The US helping Japan prop up the yen shows why the dollar is so hard to replace, Goldman Sachs says
US-Japan's yen intervention highlights the dollar's enduring appeal as a global reserve currency, Goldman Sachs says. Illustration by Sheldon Cooper/SOPA Images/LightRocket/Getty Images The US and Japan's rare joint intervention has raised questions about the dollar's reserve appeal. Goldman Sachs says the episode actually highlights why dollar reserves remain so useful to central banks. Deep US markets let central banks build dollar reserves in calm times and access them in a crunch. The Treasury's efforts to help Japan strengthen the yen aren't a reason for central banks to rethink their dollar reserves, according to Goldman Sachs. If anything, the rare joint intervention in the Japanese currency highlights one of the dollar's biggest advantages: Central banks can readily access their dollar reserves when markets get rough, Goldman analysts said in a note on Thursday. The comments come amid concerns that Washington's more hands-on approach to the Tre...
