Allianz chief economic adviser Mohamed El-Erian said a yen break past 160 per dollar would heighten speculation of Japanese FX intervention. U.S. Treasury Secretary BESSENT, in an Aug. 27 letter, warned that as a major holder of U.S. Treasuries Japan’s exposure means disorderly yen moves could trigger forced liquidations, undermine global market stability and raise borrowing costs for U.S. households and businesses.

2026-08-29

Allianz chief economic adviser Mohamed El-Erian said a yen break past 160 per dollar would heighten speculation of Japanese FX intervention. U.S. Treasury Secretary BESSENT, in an Aug. 27 letter, warned that as a major holder of U.S. Treasuries Japan’s exposure means disorderly yen moves could trigger forced liquidations, undermine global market stability and raise borrowing costs for U.S. households and businesses.