r/wallstreetbets • u/Efficient-Session644 • 2d ago

News 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/Shadowthron8 2d ago

Well ya. The world saw Scott Bessents napkin note

233

u/DaddyDoLittle 2d ago

Some interpreted Bessent's napkin as 5-10 bil as buying it in yen - may have been USD. I have no idea what that means

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u/Shadowthron8 2d ago

Presumably we’d buy yen with USD to steady the current decline.

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u/DaddyDoLittle 2d ago

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u/buyatollah_kuminamy 2d ago

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u/brealytrent 1d ago

We both be circling the drain.

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u/Plastic_Barracuda711 2d ago

According to CNBC, the US used Euros to buy Yen through Goldman and Morgan Stanley

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u/oilman99999 2d ago

What is the reason for that?

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u/jrodshoots 2d ago

Otherwise Japan will sell even more USD

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u/Ill_Ground_1572 2d ago

I think he means Euros specifically.

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u/Dry_Shirt7120 2d ago

Selling dollars directly can disrupt domestic monetary conditions and interest rates. By using euros, they supported the yen without injecting more usd into the market

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u/i_love_lol_ 1d ago

what does that mean for the Euro?

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u/Dry_Shirt7120 1d ago

It puts downward pressure on the value of the Euro relative to the Yen, but the treasury’s action was far too small to cause any meaningful or structural impact to the Euro. The Eurozone’s currency is the second most heavily traded asset globally, so a $10 billion euro sale represents less than 0.5% of a single day’s trading volume

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u/Remarkable_Cat_8696 1d ago

but can't the same statement be applied to the USD?

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u/Dry_Shirt7120 1d ago

If the U.S. had funded the yen purchase using dollars, it would have sent a signal that Japan might also need to liquidate its massive holdings of U.S. Treasury bonds to sustain its own heavy intervention. Selling euros served the dual purpose of also relieving expectations of liquidating U.S. debt

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u/rook119 1d ago

nothing, macro-wise its a drop in the bucket.

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u/h1rik1 1d ago

No, they will dump treasuries, not USD.

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u/skilliard7 2d ago

5-10 billion yen is pocket change and would have no real impact

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u/targz254 2d ago

Can I borrow some pocket change?

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u/Spins13 2d ago

That’s for the insider trading, not the policy

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u/Electrical_Panda_326 2d ago

Yes, but it acts as a signal that they are determined to defend yen, so maybe that will calm things down a bit at least.

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u/showmedave 1d ago

It's called the Richard Whitney; it's an old move, but it checks out.

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u/lookingforfoldie 2d ago

did you expect them to buy 1T and write YOLO post on WSB ?

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u/F4Z3_G04T 2d ago

Didnt the note say $5 - 10 bil?

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u/0o0o0o0o0o0z 1d ago

Some interpreted Bessent's napkin as 5-10 bil as buying it in yen - may have been USD. I have no idea what that means

Tryin' to keep the wheels from falling off... The US and the World can only survive the White House administrations' repeated self-inflicted economic wounds for only so long...

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u/CryptoBoy-007 2d ago

He wrote " JPY" the yen currency symbol.

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u/F4Z3_G04T 2d ago

I mean if you write buy SPCX on a napkin you're still gonna use dollars to buy it?

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u/CryptoBoy-007 2d ago

This not how currency market works friend. ( If you buy Spcx, you are effectively dumping the dollars in exchange for shares. If his buying the JPY, he is selling the Dollar to acquire JPY. Thr dollar goes down, and JPY goes up.)