Goldman Sachs questioned threats to the dominance of the United States dollar, claiming that the impact of the Japanese yen intervention was limited

On 7 August, the Goldman Sachs Group considered that it was unlikely that the United States support Japan ' s initiative to support the yen would undermine the position of the United States dollar as the world ' s largest reserve currency. Japan is the largest overseas investor in the $31 trillion United States Treasury debt market. Following last month’s joint exchange-rate intervention between the United States and Japan, there was some concern in the market that foreign-exchange interventions aimed at preventing sharp fluctuations in the United States bond market could weaken market confidence in the dollar’s reserve assets. Goldman Sachs stated that such views were based on the assumption that the United States might in the future try to prevent other countries from selling United States Treasury bonds. “This seems to be far-fetched,” wrote a report by strategists, including Michael Qahir. “We do not share the view that this operation would undermine the position of the United States dollar reserve currency.” Kim Xian