Bloomberg Surveillance · Monday, August 3, 2026
The US Treasury reportedly used euros, not dollars, to fund its intervention in the Yen market. This unusual approach is speculated to be a tactic to avoid addressing the strong dollar policy. By intervening with euros, the US may have circumvented potential questions about its commitment to a strong dollar.
“Investors were heavily positioned though for a week or en before the intervention, and maybe early to tell. But how much of the move we're seeing, in your view is about a policy shift versus maybe an unwind in positioning.”
“Yeah, well, it's very unusual, certainly, don't expected. I wonder whether they called the ECB to at least let them know, you know, a courtesy call, that this was going to happen. So yeah, a bit unusual.”
“So by intervening in EUROPEA and this circumvented having to use to sell dollars, which again may have raised questions about the official strong dollar policy that US governments have held for decades.”