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Goldman says Japan's $1 trillion of reserves leaves 'plenty of capacity' for further yen interventions

* Japan holds $200B in cash for yen intervention * Joint U.S.-Japan action in July marks first since 1998 * Yen gains fading, near 160; intervention seen as temporary Goldman Sachs estimates Japan has $200 billion in cash for additional yen-buying, with Fed access theoretically unlocking $1 trillion. The late-July joint intervention-Tokyo's largest since 2011-pushed USD/JPY below 158 but the currency has since slipped back near 160, erasing half the gains. Analysts view the move as a temporary reprieve, not a fix, and say sustained yen support will hinge on the Bank of Japan delivering a September rate hike and any U.S. CPI misses that raise odds of further intervention.
August 12, 2026 at 9:12 PM
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