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Although the yen’s precipitous drop against the U.S. dollar is piling on extra costs for Japanese companies and households, one struggling industry is ready to bask in the glow of a historically low exchange rate: tourism.
In fact, fully lifting border measures — as the government appears ready to do — will not only revive spending by foreign tourists and help prop up the Japanese economy, some economists believe it could also play a role in stabilizing the fast-falling yen.
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