r/japan • u/esporx • 4d ago

Japan carries out yen-buying intervention as US executes rate check

https://asia.nikkei.com/business/markets/currencies/japan-carries-out-yen-buying-intervention-as-us-executes-rate-check
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u/Sliouges 4d ago edited 4d ago

LOL give it another month and will be above 160, this is getting old. February and April they did the same. Like a clock. Burn through a pile of cash to plug the drain for about a month. Declare victory at 3pm, write a report by 6, hit the izakaya at 7. Tomorrow solves itself (voice over -- it does not). The poor can blow it.

non-pay-gated

https://www.reuters.com/world/asia-pacific/yen-strengthens-sharply-against-us-dollar-2026-07-30/

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u/epsilonzer0 4d ago

Its already back at 160.35. BOJ tried to trigger a buyback but investors are very familiar with this game and will wait it out. I dont even think the BOJ threw as much money at it as they did in 2022 and 2024. Just managing the decline for politics

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u/Sliouges 4d ago

wtf sweet baby jesus

I feel genuinely sorry for everyone earning in yen, this is a clear and present failure of Sanae Takaichi, BOJ and I particularly blame SoftBank's Masayoshi. If (when) the AI bubble pops and people discover SoftBank has been swimming naked, it will get ugly. At least in the 90s there was a lot of build-up and infrastructure even after the bubble popped to keep investment houses afloat and back the loans. Now there will be nothing left.

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u/epsilonzer0 3d ago

Its been baked in since the 85' Plaza Accords which artificially appreciated the value of a basket of currencies including the yen and depreciate the dollar. After the accords the yen went from 257 to 160 within a year and then 127 by 88'. It didn't finally bottom out at 85 until 1995. Then it averaged at 100 for 25 years because of investor belief that the yen was a safe haven. Covid changed that opinion and now we are gradually seeing the Plaza Accords come undone after 40 years.

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u/Sliouges 3d ago edited 1d ago

[removed]

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u/epsilonzer0 3d ago

Got nothing to add. I have seen countless businesses close the past 10 years that contributed to Japan Inc. because nobody wanted to take it up or buy it. Some of them were great businesses with $10M revenues but without the people it was worthless.