US Treasury May Sell Euros To Buy Yen, Avoiding Direct Dollar Sales

Analysts indicate US Treasury may intervene in forex markets by swapping euros for yen. This strategy aims to support the yen while adhering to the strong dollar policy without direct USD sales.

Woofun AI reports that analysts suggest the U.S. Treasury could engage in currency intervention by selling euros to purchase yen. This approach seeks to prevent dollar depreciation through direct sales while upholding the "strong dollar" policy stance. Sources familiar with the matter stated that the New York Fed instructed at least two major banks to verify euro/yen exchange rates last Friday. The Financial Times previously noted that the New York Fed executed euro sales and yen purchases on behalf of the Treasury to bolster the yen's value.