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Yen Intervention Risk Puts Focus on Fed’s Swelling Cash Pile

From bnnbloomberg.ca

Japanese authorities will probably need to sell Treasuries in the event they step in to support the beleaguered yen, rather than just tapping cash parked in a key Federal Reserve facility, according to Citigroup Inc. Use of the Fed’s foreign reverse repurchase agreement facility — where global monetary officials keep cash overnight — has swelled by about $32 billion in the past three weeks, reaching a three-month high of $365 billion. The influx sparked speculation that Japanese policymakers were boosting their dollar cash holdings in preparation for a move to buoy the yen, which is trading near a 34-year low ... (full story)

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  • Category: Fundamental Analysis