Bloomberg Surveillance · Thursday, August 6, 2026
Shushrukiyamada from Bank of America highlights the importance of US coordination in Japan's efforts to strengthen the yen. She explains that while unilateral intervention has limits based on Japan's foreign exchange reserves, US involvement provides a broader capacity, potentially including the sale of US dollars. This coordination is seen as key for a comprehensive response that could include faster policy rate hikes.
“Well, I think it is quite important from two perspectives.”
“One is that unilateral intervention obviously have a limit, which is the balance of FCS reserves Japan hold.”
“But you know, as the US joins, ultimately the US can sell the U S dollar you know, it issues. So I think it removes a hard limit on the intervention.”