U.S. Tariffs Are Driving Investors to Japan–Here’s Why
With the tariffs, international investors are losing confidence in the American economy. So, the yen will strengthen from that. A whole bunch of international investors are like, “Japan bonds safe. I’m going to buy Japan bonds.” And the demand for those Japanese bonds increases the demand for the yen, which pushes up the value of the yen. Is the yen too cheap? Yeah. Yeah. The yen’s too cheap. For manufacturing, you want a currency that’s a little bit cheap, but not too cheap. You get too cheap, you can’t buy stuff from overseas that you need. It gets expensive, then you can’t export. Their target range should probably be around 120 to 130. Now it’s at what 150?
Global investors are piling into Japan—and the yen is reacting.
As U.S. tariffs rattle confidence, Japan’s bond market is becoming a safe haven.
But with the yen now at ¥150, is it hurting Japan more than it’s helping?
Noah Smith breaks it down on the latest episode of The Coral Capital Podcast–link in the comments.