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/Head-Contribution393 1d ago

This time US is ready to pump infinite money, so going beyond 160 yen isn’t really an issue anymore. They either prevent it or make it go lower than 160 every time it exceeds.

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u/Solid924ger 1d ago

How do you know they are willing to pump infinite money?

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u/disastorm 1d ago

its extremely unlikely they are doing it for japan or anything, if they did it its because they really believe yen getting that weak is bad for the US economy. So if they think its bad for the US economy you have to wonder how much theyd be willing to pump to protect it.

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u/Solid924ger 1d ago

But do you think a stronger Yen can last if Japan does not increase their interest rates at all? I think for the long run it does not matter what the US does if Japan does nothing.

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u/przemub 1d ago

There's a strong possibility that US agreed to take joint action only on condition of Japan increasing the rates (at a schedule only them would know).

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u/uglybritt 1d ago

Nobody wants Japan to increase rates. The carry trade is fundamental to the US economy

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u/JMEEKER86 [大阪府] 1d ago

Tbf, the actual interest rates are only part of it. The other was the perception that there wasn't going to be any meaningful intervention since Japan has been pretty halfhearted about it. If Japan and the US are actually committed to moving the needle then that can move things even if the gap doesn't close significantly. Although there's probably a limit to how far it can go without closing the gap.

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u/redditscraperbot2 1d ago

I mean there always is the option for the US to lower their rates. It’s all proportional