
Japan's Yen Defense Strategy May Involve Federal Reserve Tools
Analysts suggest that Japan possesses various tools to defend the yen, potentially including the use of Federal Reserve facilities beyond just selling US Treasuries. The effectiveness of such measures could be tested, and the Fed might be drawn into supporting Japan's currency efforts.
The Story
Analyzing sources…
Source Diversity
Source Diversity
Moderate (27/100)Sources
Citi Says Japan Has Yen Defense Tools Beyond Treasury Sales
Japan has alternative tools to defend the yen without liquidating its more than $1.1 trillion US Treasury portfolio as its short-term debt holdings run low, according to Citigroup Inc.
By Matthew Burgess
Read full article →Analysis: Federal Reserve may be pulled into Bessent’s effort to support Japan’s yen
Treasury Secretary Scott Bessent wants to defend the yen without selling Treasuries into a sensitive U.S. bond market. The Federal Reserve could help.
Read full article →

