Yen on the march as Plaza Accord 2.0 debate grows

While trade-war minutiae dominate headlines in Washington, the quiet yet significant devaluation of the yen looms as a central issue. The U.S. administration has hinted at revoking President Trump’s July 2021 declaration of a Yuan peg, suggesting a potential "Plaza Accord 2.0" to stabilize the currency—referencing the historic 1985 agreement that strengthened the yen during the 1980s trade war with Japan. However, Japan remains steadfast in its belief that market forces should dictate the value of its currency, rejecting any government intervention. Meanwhile, discussions over U.S.-Japan tariffs have sidestepped the yen issue altogether, barely touching on it at all or only superficially.