A senior Japanese Finance Ministry official has cast doubt on using U.S. Treasury sales to support the yen, warning that such a move could prove counterproductive, Bloomberg News reported on Tuesday.
The official explained that selling U.S. bonds might push American yields higher, which in turn could weaken the yen further, the news wire said.
While noting that Japan has ample cash and deposits for intervention, the official made these remarks in Paris on Monday following U.S. Treasury Secretary Bessent's visit to Tokyo, the publication said.
Japan, the largest foreign holder of U.S. Treasuries with $1.19 trillion in combined official and private holdings, likely intervened in currency markets for the first time since 2024 late last month, yet the yen remains under pressure, it added.
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