Dollar Pivot: Yen Rescue Prices 68% Euro Stress
68%. The Treasury sold euros to defend the yen — and the ECB learned about it after the fact. That is not coordination. That is Washington treating the eurozone's reserve currency as an instrument, and Lagarde finding out the way a counterparty finds out: when the position is already on. The structural exposure here is not the yen. The yen was the stated objective. The exposure is what the dollar's unilateral euro sale reveals about G7 currency architecture — specifically, that it no longer functions as architecture. It functions as American preference with periodic notification. The market is pricing a yen stabilization story. It is not pricing the precedent, which is that any currency Washington needs can be used without prior consent.
