The U.S. Treasury "bypasses" the euro to prop up the yen, cleverly avoiding allegations of currency devaluation while maintaining a strong dollar.

According to analysis by strategists, the U.S. Treasury may be using euros rather than dollars to fund its yen-buying operations, in order to prevent pressure on its own currency and to avoid market doubts about its "strong dollar policy." According to sources, at least two major U.S. banks received inquiries from the New York Federal Reserve last Friday (July 31) to confirm the exchange rate level of yen against euros. Additionally, reports from last week indicated that the New York Federal Reserve had sold euros and bought yen on behalf of the U.S. Treasury.