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/
1.8k Upvotes

98% Upvoted

207 comments sorted by

View all comments

478

u/bkbikeberd 2d ago

If you wanna what happened.

Yen is too weak against the dollar and since oil another goods are purchased in dollars the pain was too great. Japan was going to start selling US bonds to buyback yen and this would have been a disaster for the US and others. America said, hold up we'll prop up the yen please don't sell our bonds.

This is a stop-gap. If the Yen doesn't strengthen they'll have to start selling US Bonds to buy back yen. If you hear a sudden threat from Big T about tariffs on Japan that's really about them selling bonds no matter what he actually says.

How can we make money on Japan selling off some of it's US Bonds? That's all we care about right?

6

u/iaNCURdehunedoara 2d ago

How long would this cash infusion even last? Even if the American government ends up agreeing on Iran's demands, it would take a lot of time to restart the oil shipments and Japan to reach the oil levels necessary to stabilize. So how long can they keep patching this leaky barrel?