In an yen-selling intervention, Japan can keep printing yen to sell to the market. But for yen-buying intervention, Japan needs to tap its $1.33 trillion of foreign reserves which, while abundant, could quickly dwindle if huge sums are required to influence rates.
China should take a lead role in creating international rules for digital currencies, which will increase global settlements using the yuan and loosen US dollar dominance, experts say.
The yuan breached 6.9 per US dollar for the first since August 2020 on Monday, but other Asian currencies have shown a sharper decline, ramping up risks for the region, analysts say.