Strategist: The U.S. Treasury may intervene in the yen with euros to maintain a strong dollar policy

According to Jinshi News, strategists indicate that the U.S. Treasury may use euros instead of dollars to fund its yen purchasing plan, in order to avoid depreciation of its own currency and to prevent its strong dollar policy from being questioned.

David Forester, a senior strategist at Crédit Agricole Bank in Singapore, pointed out that the U.S. maintains a strong dollar policy and does not want to be seen as trying to gain a competitive advantage by weakening its own currency.

Jason Wang, a currency strategist at the New Zealand Bank in Wellington, stated that this approach may be less transparent, but the ultimate effect is the same.