Cost of Japan post-Brexit

I don't understand much about financial markets so looking for any info as we are heading to Japan in September and have already booked flights. After the referendum result of the UK leaving the EU and the pound falling dramatically, does anyone know what impact this will have on how expensive going to Japan will be in comparison to before?

So you've bought your flights, but have not pre-paid for anything else, I assume.

Everything you need to pay in yen when in Japan will be more expensive compared to before. Put it simple, if the sterling falls 10% against the yen, your sterling loses 10% of purchasing power in yen. And noone can predict how much sterling-to-yen rate will be in September.

Costs inside Japan will remain the same. What you might be concerned about is the strength of the Yen against your currency. Without telling us your native currency, we can't tell you what the effect might be.

The Yen is strengthening as people are investing in strong and stable currencies (like the Yen) after the fall of the pound.

Anything that can be prepaid. I would do asap. Lock in a better conversion rate now. Rail passes, hotels etc.

If you are going to get spend cash. Do it now also.

If the yen continues to strengthen, then your apparent cost will go up. This is not certain, and the Bank of Japan is making moves to alter the currency. Also, some rational thinking is starting to be applied now that the result is actually in.

Fixing a rate now versus the future, nobody knows and such advice is dangerous. Afterall, "everyone" thought the result would be 52/48 not 48/52.

The different is at the exchanged rate which you have no control over it so just take it easy and Yen had been strengthern much may not be at the same pace going forward as that will kill their export sector the Govt will do something. Hence from now till Sep is a very short time spend do not foresee too much appreciation for Yen hence just go as planned.

If you worry about the Yen continue surging then it could be wise to locked in some part of the cost such as Hotel or the Pass hence when Yen surge you protect that part of the investment and when Yen come down you change some cash to lock in a lower rate etc ...

After all the amount on a trip to Japan is not that much one need to considered deeply due to currency rate issue. Just go as planned.

Just keep watching the rates. It peaked 6 days ago, you were getting 160 yen per 1 pound. Now it is 135. But it has been 135 steady for the past 3 days.

It isn't really about the strength of the yen though. It is more to do the the pound decreasing in value. The whole Brixit thing is a long term effect. If it a slide does happen, it will probably be moreso after your trip.

What is the OP's based currency is it pound ? (as he did not mention)

The pound was mentioned in his questioning. Re read it.

Yes pound has been mention in his message perhaps he is using that to express the yen surge not necc indicate he is using pound as based. He need to be precised.

I do not make presumption when there is no specific details unlike one of the poster in the other message also making presumption that the pair want to travel the cheaper option and turn out the pair want the reserved seat.

If you click on his name you'll see he's from London.

Ok that make more sense. Thank you.

Thanks for all your replies, that's useful and answers my question. Yes i'm talking about converting from Pound to Japanese Yen.

I have only booked flights so was basically asking whether hotels and anything else I had planned to book in the coming weeks will be significantly more expensive now than they would've been a few weeks ago.

As said above - no one can predict the future.

It *could* be that the pound will recover somewhat if we get some certainty over the coming weeks/months as to what the likely outcome will be for the UK (and therefore how desirable the GBP will be for investors/what the outcome for the GB economy may be).

It's also possible that Japan will take action again to stop the Yen becoming stronger. Japan currently does not want such a strong Yen.

It's also possible that neither of those things will happen. In fact, the opposite could happen. Or nothing could happen.

You could take a bet by either buying Yen now, or by holding off until you go, or you could hedge to a certain extent by buying some Yen now and the rest later. No one can tell you what the best bet is. The markets don't know, and no one has a crystal ball.

One thing to consider, as a way to put it all into context, is that the fall in the GBP against the Yen from last Spring (when it was almost touching JPY 200: GBP1), or from a year or so before that (when it was even higher), is nothing compared to the fall since Brexit.

In other words, although you could get sad about the fall in the last week, you can't do anything about it and you'd have saved yourself more cash by buying Yen last December than by buying it a week ago. Or at least that's what I tell myself to cheer myself up ;0)

Just wanted to add that I feel your pain, I've been watching exchange rate closely and the post brexit drop is a huge blow. I'm going to Japan in March. All we can do is hope it recovers. An example of increased cost - a theme park ticket is 7400yen to Disneyland or universal studios. Before brexit this was around £48, today it'd be around £54 (depending on what rate you get on exchange). Although this difference alone isn't terrible imagine every activity will be similar and hotels and food and it all adds up.

I thought about converting yen sooner but I figured I wouldn't want to carry that much cash around at once.
The rate has been slowly improving so might be best to just cross fingers it continues to improve and find ways to ensure best on the day rate (like a specialist travel credit card that allows cash withdrawals)