Japanese institutional investors seem to have sought returns by selling dollar-denominated assets. That kind of repatriation is generally yen positive.

Most of (the holdings) are in dollar-denominated assets. They'll want to see how vulnerable it is to the U.S. Congress. It'll be more difficult to finalize an investment proposal that involves an American bank or an American asset.

Japanese institutional investors as well as mutual funds finally started to buy foreign currency-denominated assets, after having stayed on the sidelines for some time since the start of the new fiscal year.

Everyone is waiting for an end to the tightening cycle, so that's why the dollar is vulnerable.

If they diversify from the U.S. dollar denominated assets, it would lower the value of the U.S. dollar relative to China's currency, the yuan, and make it more expensive for American companies to buy goods made in China.

There is enormous demand for dollar denominated assets so I don't expect that this demand would drop precipitously.