Japan has gotten rid of billions of dollars worth of U.S. Treasuries in an effort to shore up its currency.
According to new data from the U. S. Treasury, Japan sold $22 billion worth of U. S. Treasuries in May, reducing its holdings to $1,128.3 billion.
This move marks the second month in a row that Japan has reduced its large holdings of U. S. Treasuries, with $37.5 billion sold in April.
The latest sale comes amid Japan's efforts to curb the yen's sharp decline against the U. S. dollar. According to Bloomberg, Japan spent $36.6 billion last month alone to combat speculators betting against the yen's strength. The July intervention follows similar measures in April and May, underscoring the government's efforts to curb speculators.
These measures appear to have helped reverse the yen's downward trend, partly due to increased speculation that the significant interest rate differential between the two countries is set to narrow. Japan is not expected to disclose further details of its currency intervention measures until November.
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