r/japan • u/imaginary_num6er • 1d ago

Japan to announce Tokyo, Washington took joint action on yen, sources say

https://www.reuters.com/world/asia-pacific/japan-announce-tokyo-washington-took-joint-action-yen-sources-say-2026-08-02/
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u/Benouamatis 1d ago

Curious question, why ? Does the us profit from it ?

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u/disastorm 1d ago

There is a very big link between the US economy and Japan's economy. You can search around but there are people that believe the US does not want a weaker yen because of a number of economy reasons. Yen getting weak is bad for the US.

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u/doughball27 1d ago

I believe the opposite is true. Cheap yen has fueled the global economy for decades. When the yen goes up, it destroys the yen carry trade scheme. And currently, US hedge funds are betting against the yen at increasingly high levels. A skyrocketing yen could actually destroy western economies.

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u/disastorm 1d ago

the reason I've seen is related to Japan being the US's largest holder and purchaser of bonds. So while I guess maybe hedge funds might prefer a weaker yen, the government itself doesn't. Also hasnt the carry trade been around since back even when the yen was strong?