The G5 announced on 22 September 1985 that it had agreed under the Plaza Accord to guide the yen higher and the dollar lower, after which the exchange rate moved rapidly in favour of a stronger yen. The article also discusses the background to and impact of the agreement, as well as Nikkei Average records.
On 22 September 1985, a meeting of the G5, the five leading industrialised countries including Japan and the United States, was held at the Plaza Hotel, and the participants issued a statement agreeing to guide exchange rates toward a stronger yen and a weaker dollar. In addition to Japan and the United States, the meeting was attended by the United Kingdom, France and Canada. Japan was represented by Minister of Finance Takeshita Noboru (竹下 登), who later became prime minister. The agenda centred on stabilising the dollar, and guiding exchange rates toward a stronger yen and a weaker dollar was a key element of the agreement as trade and fiscal deficits expanded.
Immediately after the agreement was announced in 1985, the foreign exchange market moved sharply, with the yen strengthening significantly from around ¥235 to the dollar. The article states that by July 1986 the yen had reached the ¥150 range, suggesting that the yen's appreciation had a long-term impact. The closing level of the Nikkei Stock Average on 22 September 1980 is given as ¥12,666.95, presented as comparative information on market conditions at the time.
The sharp appreciation of the yen forced export industries to improve operating efficiency, while consumption of imported goods increased and an overseas travel boom also took place. According to the article, exporters such as automakers and electronics manufacturers were forced to reposition their competitiveness, while consumers generally increased their purchases of imported goods.