Japan Likely Sold Treasuries to Show FX Firepower, Analysts Say
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Japan likely sold some of its Treasury holdings to fund its yen interventions, in a bid to show speculators it has more immediate firepower than they may have expected, according to analysts.
The country’s holdings of foreign securities dropped by $43.9 billion in October to $941.3 billion, according to a finance ministry report Tuesday. A simple comparison shows that’s close to the $42.9 billion Japan spent last month supporting the embattled yen.