tw1984 2 hours ago

In 1985, USDJPY was around 250:1, why 160:1 is now a problem?

With almost all of its industries no longer in a leading position, with its car industry being demolished by EVs, 250:1 is what it is heading.

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weakened_malloc an hour ago | parent | next [-]

Because that was 1985, and this is now. Entire supply chains, input costs, planning, etc. have been built around the assumption of the JPY trading in some sort of range.

Of course that will change over time, if it hasn't already. The Japanese government's messaging about this has been that they're not really worried about the currency weakening (after all they're massive net exporters! it should be a good thing), but rather the speed at which it's happening.

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afarah1 an hour ago | parent [-]

Most large companies hedge their exposition to FX rates.

	▲	weakened_malloc 27 minutes ago \| parent \| next [-]
		Many don't though, and even if they all did, you can't hedge forever. Hedges are also rolling, so as some hedges expire the companies need to set up new hedges, which are at a worse FX rate. So the hedges lessen the impact but they aren't perfect, otherwise they would not be called 'hedges'.
	▲	reactordev an hour ago \| parent \| prev [-]
		FX futures, but yes.

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himata4113 2 hours ago | parent | prev | next [-]

USD is falling vs euro so EURJPY is even more bleak. USD in general during those times was way stronger than it is today so those numbers are meaningless.

	▲	hackernud3s 19 minutes ago \| parent [-]
		I haven't checked USDEUR in years and it's exactly where it was last time.

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lkrubner an hour ago | parent | prev | next [-]

In late 1945 the exchange rate was 360 yen to 1 dollar. If that was good in 1945 then it should be good in 2026 because nothing ever changes.

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AnimalMuppet an hour ago | parent | prev [-]

Because you cherry-picked 1985. It went below 160:1 in 1986 and hasn't been back since, until now. So it's the weakest it's been in literally 40 years; that's at least potentially a big deal.

	▲	alansaber an hour ago \| parent [-]
		Just buy the bottom and sell the top. Are they stupid?