While Japan and the United States have busied themselves with trade-war minutia — from bowling-ball tests to soybean purchases — the elephant in the room has quietly made itself known. The value of the yen is suddenly front and center.
The United States has claimed that Japan's currency is undervalued, with some people in the administration of President Donald Trump calling for a Plaza Accord 2.0. This is in reference to the 1985 Plaza Accord, an agreement between the U.S. and a number of other countries, Japan included, that led to a dramatic strengthening of the yen.
Japan is unimpressed. It insists that the value of the currency should be decided by the markets and that governments shouldn't interfere. So far, negotiators discussing the tariffs placed on Japan by Trump have managed to avoid discussing the yen at all or in any depth, gingerly kicking the can down the road on a highly contentious issue.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.