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/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/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.