🇺🇸 FED SIGNALS YEN INTERVENTION — JUST LIKE 1985
Last time this happened, the dollar collapsed nearly 50%.
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$BNB In 1985, the U.S. dollar had become too strong.
U.S. factories were losing competitiveness
Exports were collapsing
Trade deficits were exploding
Congress was threatening aggressive tariffs on Japan and Europe
So Washington made a move that markets never forget.
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The U.S., Japan, Germany, France, and the U.K. met at New York’s Plaza Hotel and agreed to intentionally weaken the dollar.
They coordinated FX intervention — selling dollars and buying foreign currencies together.
This became known as the Plaza Accord.
📉 What followed over the next 3 years:
Dollar Index fell ~50%
USD/JPY collapsed from 260 → 120
The yen doubled in value
This was one of the largest currency resets in modern history.
Why it worked?
Because when governments coordinate in FX, markets don’t fight them — they follow.
📈 A weaker dollar unleashed:
Higher gold prices
Commodity supercycles
Strong outperformance in non-U.S. markets
Asset inflation in dollar terms
Now look at today.
The U.S. still runs massive trade deficits
Global currency imbalances are extreme
Japan is once again the pressure point
The yen is again historically weak
That’s why “Plaza Accord 2.0” is even being discussed.
🚨 Critical signal:
Last week, the NY Fed conducted rate checks on USD/JPY — the exact procedural step taken before FX intervention.
This signals willingness to sell dollars and buy yen, just like 1985.
No intervention has happened yet.
But markets moved anyway.
Because markets remember what Plaza means.
If coordinated intervention begins again, the implications are massive:
💥 Every asset priced in dollars reprice s higher
💥 Gold, commodities, and non-USD assets surge
💥 The dollar loses its dominance premium
This is how currency regimes change.
Not overnight —
but once it starts, it doesn’t stop quietly.
#Macro #JPY #PlazaAccord #FXIntervention #GlobalMarkets