In recent times, people have noticed the stability of the Japanese yen and the South Korean won, while the US dollar index has started to decline.
For a moment, it seems that the currency war among Asian currencies has subsided.
People can't help but wonder, how has the Japanese yen maintained stability?
Meanwhile, the Chinese yuan has experienced depreciation, raising more questions.
The recent changes in the international economic situation are unpredictable and complex, but no matter how complex the situation is, the competition among major powers remains fierce.
Recent data suggests that the volatility of Asian currencies seems to have slowed down.
The Japanese yen exchange rate is stable at around 157, not dropping to 180 as some had predicted, or even back to the lowest point of 160 in early May.
The South Korean won is also stable at around 1376, with other Asian currencies maintaining stability.
Meanwhile, the Chinese yuan has experienced a slight depreciation, falling below the 7.24 mark.
At the same time, the US dollar index has slightly dropped to around 104.5.
Although the situation is somewhat unusual, overall it tends to be stable, a rarity.
People can't help but wonder, why has the US suddenly stopped?
According to the US's style, they usually don't back down easily.
However, this time, although their actions were grand, the results were not as expected, leaving people puzzled.
What's really going on? What story lies behind it?
Some believe that the so-called Asian currency war is purely fictional, that the US never really acted, just a figment of some people's imagination.
However, the recent sharp decline in the Japanese yen and the South Korean won, and the economic difficulties in Vietnam, various data and facts indicate that this is not groundless.
Short positions in the Japanese exchange rate market even approached 1.5 million at one point, setting a record for several years. US officials were also involved, with signs of international bearish actions.
However, why did the US suddenly stop?
Given the complexity of the current international economic, financial, and great power competition, we might find some clues.
The US has always advocated for maximum pressure but would not escalate to full confrontation.
Perhaps this action can be seen as a tentative attack by the US; they may have realized that even if the yen and the Japanese economy collapsed, they couldn't bring down the yuan, so they chose to halt.
Or perhaps this action is part of US pressure, and they have achieved their expected goals, so they chose to pause temporarily.
Regardless, what has the US achieved?
They have issued warnings to Japan and South Korea, demanding control over trade with Russia, and imposing tariffs, among other measures.
Although this series of measures did not go smoothly, they did not encounter significant obstacles.
After this round of action, the US dollar index has risen by 3.7% this year, especially with the rapid appreciation of Asian currencies; the Japanese yen has appreciated by 12%, and the South Korean won by 6%.
At the same time, although Japan and South Korea did not explicitly oppose verbally, they also took measures to resist.
Information released by the Japanese Ministry of Finance shows that the Bank of Japan intervened in the foreign exchange market multiple times between April 26 and May 29, with a total amount of up to 9.7885 trillion yen.
South Korea also intervened multiple times, although the specific numbers are unknown.
Furthermore, Japan and South Korea have taken more aggressive measures, such as convening meetings of finance ministers and central bank governors of China, Japan, and South Korea, as well as China, Japan, and South Korea business summits and leadership meetings.
The attitudes of Japan and South Korea seem delicate and obvious, feeling dissatisfied with the pressure from the US, thus seeking support from the East.
When the US convened the G7 finance ministers' meeting and planned a new round of attacks on China's excess capacity, Japan and South Korea needed to take on new tasks.
However, due to the possibility of excessive pressure, there was a slight relaxation in monetary policy.
Nevertheless, the G7 finance ministers' meeting did not go smoothly; Germany and France objected, and even Japan did not take a clear stance.
In addition, we cannot rule out the possibility of the US facing its own crisis, thus weakening its actions, making it difficult to achieve the expected goals for a while, so they had to retreat first.
Great power competition is always a balancing act, requiring comprehensive consideration of various factors and making corresponding adjustments and decisions according to the situation.
From this incident, it can be seen that the US has lost its absolute strength and dominant position; their actions are increasingly restricted, and the final results are increasingly disappointing.
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