A senior Japanese Finance Ministry official cast doubt on using US Treasury sales to prop up the yen, warning such a move could prove counterproductive. Toru Fujioka explained authorities fear selling their US government bond holdings might increase American yields, potentially triggering further yen decline rather than supporting it.

Japan maintains substantial intervention resources with $1.17 trillion in foreign currency reserves as of April, including $162 billion in deposits. Despite likely intervening in currency markets since late last month to support the weak yen, the currency has remained under pressure, hitting its lowest level against the dollar since April 30.

Japan holds $1.19 trillion in US Treasuries, making it the largest foreign holder. Following US Treasury Secretary Scott Bessent's Tokyo visit that showed unity between the nations, Japan continues seeking effective measures to stabilize its currency without risking the counterproductive consequences of Treasury sales.