The Japanese economy has always been said to have "disappeared for 30 years", mainly referring to the fact that the Japanese economy has been stagnant since the signing of the Plaza Accord in 1985. There is no doubt that the Japanese economy will be in the situation it is today, and the United States is behind it.
But what people didn't expect was that just recently, the United States once again took action against the Japanese economy, and promoted the collapse of the Japanese exchange rate through a series of moves, and even before Japan's rescue of buying yen and selling dollars, it was warned by the United States, and Japan was included in the watch list of manipulating exchange rates by the United States. Now that the yen has begun to fall again, even the countries of the European Union have begun to join in harvesting the yen.
Judging from the public data, the exchange rate of the yen against the dollar has fallen below 161 yen to 1 dollar, which also means that the exchange rate of Japan against the dollar has fallen to 0.0062, and 1 yen cannot even be exchanged for 1 cent. This also means that the level of the yen exchange rate has not only returned to the level before the Japanese bailout, but has even fallen back to the level of December 1986.
Judging from the news coming out of Japan, Japan sold a large number of dollar assets in April and 5 and bought yen on a large scale in the international exchange rate market. This also brought the yen back from the 160 mark to around 156. It can also be seen from the data released by the U.S. Treasury Department that Japan reduced its holdings of U.S. bonds in April.
However, it is clear that the dollar's plans to harvest Asian currencies will not be easily stopped, and in the face of successive failed harvests of the dollar, it has once again turned its attention to the yen. The United States has not only taken action against the yen many times, but has even demanded that the Japanese government not start a bailout plan, and has already included Japan in the exchange rate manipulation watch list.
Judging from the data released so far, not only the exchange rate of the yen against the dollar has begun to fall rapidly, but even the exchange rate against the euro has begun to fall rapidly, and the current 172 yen can only be exchanged for 1 euro. You must know that a large part of the decline in the exchange rate of the yen against the US dollar is due to the rise in the US dollar exchange rate due to the Fed's continuous interest rate hikes, and it is also related to the continuous shorting of the yen by financial institutions on Wall Street in the United States.
It is not difficult to see from the previous situation that the exchange rate of the euro against the dollar has also fallen since 2023, and it has remained at the level of about 1.5 dollars per euro, and now 1 euro can only be exchanged for 1.2 dollars. This also means that the euro has fallen against the US dollar.
In this case, the exchange rate of the euro against the yen has begun to rise gradually, which actually means that the EU countries have also begun to short the yen, to put it bluntly, they are helping the dollar to harvest the yen. Judging from the current trend of the yen against the dollar, many people in the industry believe that many US hedge funds have begun to short the yen again recently, and even EU financial institutions have also participated.
At the same time, judging from the current news, many European central banks, including the Bank of Canada and the Swiss National Bank, have recently announced a series of interest rate cut plans. This also means that the exchange rate of the Canadian dollar and the Swiss franc has begun to fall, which further boosts the US dollar index.
There are currently six currencies pegged to the US dollar index, including the euro, the Swiss franc and the Canadian dollar, and even the British pound. This also contributed to the growth of the dollar index, which further led to an increase in the decline of the yen exchange rate.
You must know that the development of the Japanese economy has been halted due to the Plaza Accord mandated by the United States, and Japan's GDP has repeatedly experienced negative growth in US dollar terms, so it can be said that Japan's economy continues to be in a sluggish state.
For Japan, the only benefit of the Plaza Accord is the rise in the yen's exchange rate, which has increased the purchasing power of the yen in the international market. However, the yen exchange rate has fallen to the point when the Plaza Accord was just signed, which means that the only benefit of the Plaza Accord to the yen has disappeared.
Judging from the data released so far, the decline in the yen exchange rate has further contributed to the downturn of the Japanese economy. According to the data released by Japan, Japan's GDP in 2023 will be 4.21 trillion US dollars in US dollar terms, which is even lower than Japan's GDP in 1995.
Many people may wonder why the Plaza Accord's mandated increase in the yen's exchange rate led to the stagnation of Japan's economy, and now that the yen exchange rate has fallen, it has led to a stagnation in Japan's economy. In fact, this is mainly due to the fact that Japan, as an export-oriented country, has the most important thing to keep its currency exchange rate stable.
Whether the yen exchange rate rises or falls sharply, it will affect Japan's foreign trade and exports, especially such a large change in the short term. In addition to the Plaza Accord, Japan's previous economic downturn is actually related to the United States' repeated actions against Japan's technology industry.
For example, the United States mandates that the market share of American chip and semiconductor companies in the Japanese market shall not be less than 20%, which has directly led to the weakening of the Japanese semiconductor industry.
Judging from the situation of hibiscus, after being warned by the United States, it is actually difficult for Japan to openly affect the exchange rate market, and under the concerted efforts of many US and Western central banks, many people in the industry believe that Japan will inevitably be harvested this time.
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