US Support for Yen Boosts Dollar Confidence

Goldman Sachs Group Inc has downplayed concerns that US support for Japan's efforts to prop up the yen could erode confidence in dollar reserves.

Japan is the biggest foreign investor in the $31 trillion Treasuries market, and a joint currency intervention last month sparked worries about the impact on dollar dominance.

The argument assumes the US might try to hinder others from selling Treasuries in the future, but Goldman said this assumption is unlikely to damage the dollar's status as the most dominant reserve currency in the world.