Goldman Sachs said US support for Japan’s yen intervention is unlikely to erode
the dollar’s position as the world’s primary reserve currency. Japan is the
largest foreign investor in the roughly $31 trillion US Treasury market. After
last month’s coordinated US-Japan currency intervention, some market
participants warned such measures—aimed at preventing sharp moves in the US bond
market—could weaken confidence in dollar reserve assets. Goldman strategists,
including Michael Cahill, said that argument rests on the assumption the US
would try to block other countries from selling Treasuries in future, which they
called "far‑fetched," and they do not expect the action to damage the dollar’s
reserve status.
