US-Japan Yen Intervention Could Boost Bitcoin
The US andJapanconducted their first joint yen intervention since the late 1990s, potentially setting a precedent for future currency moves. The intervention could boost global dollar liquidity through the. . .
The US andJapanconducted their first joint yen intervention since the late 1990s, potentially setting a precedent for future currency moves. The intervention could boost global dollar liquidity through the FIMA repo facility, which allows Japan to access dollars without selling US Treasuries. The unwinding of the yen carry trade, signaled by rising Japanese bond yields, poses both risks and opportunities forBitcoinand risk assets. The US and Japan conducted a rare joint intervention to prop up the yen last week, marking the first such coordination since 1998 as the currency slid to 164 per dollar. The New York Fed sold euros on behalf of the US Treasury using the Exchange Stabilization Fund. - Advertisement -Treasury SecretaryScott Bessentpublicly emphasized his meeting withBank of JapanGovernorKazuo Uedaat the upcoming G20 gathering,writingthat Japan’s economy continues to perform well under a strong commitment to monetary and financial stability. Bessent alsocalledfor the FIMA Repo Facility to be expanded, describing it as an important backstop for dollar liquidity. TheBank of Japanis one of the few central banks with access to the Federal Reserve’s FIMA facility, which provides dollar liquidity without requiring the sale of US Treasuries. This is critical because Japan is the largest holder of Treasuries, and accelerated sales could push up yields, increasing borrowing costs for the US government. EconomistMohamed El-Erianarguedthat Washington has now signed onto a strategy whose success hinges on comprehensive policy alignment among theBank of Japan, theMinistry of Finance, and thePrime Minister’s Office. Meanwhile, Japanese two-year bond yields rose above 1. 57%, signaling an end to low-interest-rate conditions that have fueled the yen carry trade. This shift could ultimately benefitBitcoinand risk assets as investors repatriate capital to take advantage of changing domestic conditions. - Advertisement -✅ FollowBITNEWSBOTonTelegram,Facebook,LinkedIn,X. com, andGoogle Newsfor instant updates. Previous Articles:Senate to Vote on Crypto CLARITY Act Before RecessThe Hashgraph Group Launches Hashgraph Partner Alliance for Enterprise Web3 and AI DeploymentsBitmine buys $10. 9B Ether, nears 5% supply targetBitcoin Climbs Above $64K Despite $100M HackAmazon’s $3 Trillion Milestone: Cramer Urges Investors to BuyStay in the Loop🔥Join 1. 2K Smart TradersGet exclusive crypto insights, breaking news, and market analysis delivered straight to your inbox. No fluff, just facts.