The yen’s climb against the yuan as China weakens its currency to spur growth hurts Japan’s tourism industry, says SMBC Nikko Securities Inc.
“The yen is getting the biggest brunt because it’s been the weakest among other currencies against the yuan,” said Junichi Makino, chief economist at SMBC Nikko in Tokyo. “When the yen strengthens, Chinese visitors will spend less even if their number remains the same. Inbound consumption will definitely decline.”
The yen has surged 12 percent against the yuan since August when China surprised the global markets by devaluing its currency, more than twice as much the U.S. dollar’s appreciation.