How the Dollar-Yen Cross Rate Is Reshaping US Trade With Japan

The yen hit 161.68 against the dollar on June 28, 2026 — its weakest level in decades. But while a weaker yen typically makes Japanese exports cheaper, the trade deficit story has flipped: the US is now importing more services from Japan than ever before. In this episode, Lucas and Luna unpack how exchange rates, interest rate differentials, and a surprising boom in Japanese tourism and digital services are rewriting the US-Japan trade balance. They also explore what this means for American manufacturers competing with Japanese firms, and why the Fed's rate path matters more than the dollar index itself. With specific data on the trade balance improvement from -56.6 to -55.9 billion dollars, and a look at how Japanese tourists are spending record amounts in the US, this episode offers a fresh lens on a familiar story. #USDJPY #TradeDeficit #StrongDollar #JapanTrade #YenWeakness #ServicesExports #FedRatePath #BOJ #CurrencyWar #ExportCompetitiveness #TradeBalance #TourismSpending #DigitalServices #Manufacturing #Economics #FexingoBusiness #BusinessPodcast #TradeDeficitPodcast Keep every episode free: buymeacoffee.com/fexingo