Overview

• Monday marks the 40th anniversary of the 1985 Plaza Accord, which coordinated a weaker dollar and triggered a rapid yen surge that damaged Japan’s exporters.
• Japanese market participants now fear Washington could push for steps to restrain dollar strength as President Trump prioritizes shrinking trade deficits, with the yen trading near ¥147 per dollar.
• Tokyo and Washington issued a Sept. 12 joint statement saying exchange rates should be market determined, indicating no current move toward joint intervention.
• The United States recorded a $1.22 trillion trade deficit in 2024, a record that keeps exchange-rate policy in focus for U.S. officials and markets.
• A 2024 paper by Stephen Miran proposed a “Mar-a-Lago Accord” to weaken the dollar, and analyst Tomohisa Ishikawa urged continued careful U.S.-Japan dialogue if tariffs fail to narrow the deficit.