Financial Times Analysis: US Treasury's actual intervention in JPY in July may have been only around $500 million, significantly lower than market expectations.
The Financial Times' Alphaville column analyzed that the U.S. Treasury's intervention in the Japanese Yen exchange rate in July this year might have been significantly smaller than the market's previous estimate of $5 billion to $10 billion, possibly only around $500 million. Researchers arrived at this conclusion by tracking the U.S. Treasury's weekly foreign exchange reserve data and excluding valuation effects caused by exchange rate fluctuations. Since the Exchange Stabilization Fund (ESF) financial report for July did not explicitly disclose relevant positions, the analysis suggests that the intervention was more likely conducted through the spot market. If this estimate holds true, it implies that the U.S. Treasury's ability to influence exchange rates through foreign exchange tools might be far less potent than the market previously imagined.
Source:华尔街见闻 · Source Link
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