Goldman Skeptical of Dollar-Dominance Threats After Yen Support

Currencies Goldman Skeptical of Dollar-Dominance Threats After Yen Support US support for Japan’s efforts to prop up the yen is unlikely to damage the dollar’s status as the most dominant reserve currency in the world, according to Goldman Sachs Group Inc. Japan is the biggest foreign investor in the $31 trillion Treasuries market, and last month’s joint currency intervention has stirred some concern that US support for the yen — likely aimed at preventing unwanted volatility in US bonds — could erode confidence in dollar reserves. Such an argument assumes the US might try to hinder others from selling Treasuries in the future, Goldman said.