Goldman says Japan's $1 trillion of reserves leaves 'plenty of capacity' for further yen interventions

A Japanese 10,000 yen banknote arranged in Kyoto, Japan, on Tuesday, July 14, 2026. The Japanese government's push for pension funds and individuals to invest more in domestic markets is seen as a potential boost for the nation's bonds and currency in the long term. Photographer: Kentaro Takahashi/Bloomberg via Getty ImagesKentaro Takahashi | Bloomberg | Getty ImagesJapan has enough cash at its disposal for a couple more rounds of yen-buying on the scale of last month's historic intervention, helped by access to a Federal Reserve facility, according to Goldman Sachs.Of Japan's roughly $1 trillion in U.S. dollar reserves, about $200 billion — likely the size of the July operation — sits in cash or cash equivalents, Goldman estimated. "They already have at their disposal enough to do another couple rounds of what we just saw," which were near record size, Karen Fishman, a Goldman Sachs Research strategist, said on the bank's Exchanges podcast published late Wednesday U.S. time. "Realistically, they wouldn't come close to using all of that, but I think that just sort of hits home the point that they have plenty of capacity to keep intervening if they wish," Fishman said. Access to the...