Reply #59: Japan is not about to start dumping dollars for euros

[Art_from_Ark]

The whole point of Japan's buying dollars was to prevent the dollar from falling below the "threshold of pain" for Japanese exporters, which appears to be about 105 yen/dollar. Japanese exporters were really hit hard the last few times the yen was so strong, so the government finally got involved and decided to intervene, threatening to use its vast reserves of idle yen to buy up to 1 TRILLION US dollars.

Japan, like other East Asian countries, takes a long-term view. The government won't start selling its Treasuries until the yen-dollar rate reaches the threshold of pain for importers-- probably 123 yen/dollar, or thereabouts.