How will Japan buying US debt bring down the Yen? Trying to understand the relation… Thanks!
On the simplest level: Japan has to sell a lot of Yen to buy dollars, and will decrease value of the Yen since they’re flooding the market with it. And since you’re eating up dollars to buy US debt, you boost the demand for US dollars.
rockstar Wrote: “Japan to buy US debt” Is US buying tsunami in return?
rockstar Wrote: ------------------------------------------------------- > How will Japan buying US debt bring down the Yen? > Trying to understand the relation… > > Thanks! To buy US debt you will have to convert your yen into dollars (i.e. sell yen, buy dollars).
I see I see. Thanks y’all!
Depends upon the suspension hook and fries. There was a gentleman that offered his views on this years ago, I believe his name was cinton. Maybe he can offer some guidance on this?