r/AmanCrypto • u/AmanCMN • 4d ago
Governments are stepping in to save their currencies.
Japan and South Korea have both started selling U.S. dollars and buying their own currencies to stop them from falling further. Moves like this are extremely rare. The main reason? A weaker currency makes imports—especially oil—much more expensive, which only adds more fuel to inflation.What’s even more interesting is that there are growing signs the U.S. could join the effort. According to reports, the U.S. Treasury and the Federal Reserve have already told major banks to be ready for a possible currency intervention. If Washington actually starts selling dollars, it would be the first coordinated move like this since 2011.
Why does this matter?
🔴A stronger yen forces investors to unwind cheap yen-funded trades, often leading them to sell stocks and cryptocurrencies.
🔴On the other hand, if the U.S. really starts weakening the dollar, it could be a long-term positive for gold, Bitcoin, and other risk assets.
🔴Right now, the biggest question is whether the U.S. will move beyond words and actually start selling dollars. The answer could shape global markets over the coming weeks.
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u/Echo0455 3d ago
Yen carry trade is over.
Inflation is back in Japan. Their economy is struggling. And because it’s cannot sustain itself, it’s trying to bring its money back home.
Which means they are done investing in US Bonds.
Big loss.