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Japan’s coordinated intervention supports yen without US debt sales

The strategy, highlighted by reporting on Bessent, is framed around backing the yen through coordinated steps while avoiding pressure that would force additional sales of US Treasurys.

Reported · Written up by our desk · Major Pairs

The New York Times Business reports that Bessent, described as a currency trader at heart, has a view on Japan’s yen strategy that centers on coordinated intervention rather than Japan drawing down US debt holdings.

According to the reporting, Japan was able to support its currency through coordinated actions, which helped limit the need to sell off its US Treasury positions.

The accounts tie the intervention approach to a key constraint for Japan, namely that currency support would be harder if it required significant reductions in US debt holdings.

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