Japan may have spent $32 billion in additional yen-buying intervention
Central bank data indicated repeated intervention as authorities tried to curb imported inflation and stop the yen from sliding past 160 per dollar.
- Central bank data indicated on Thursday that Japan likely spent 5.01 trillion yen to bolster its currency, signaling repeated intervention efforts amid ongoing market volatility.
- Interest rate disparities between the U.S. Federal Reserve and the Bank of Japan have fueled the 'carry trade,' pressuring the yen as the gap—3.75% versus 0.75%—drives investors toward higher-yielding assets.
- Top currency diplomat Atsushi Mimura confirmed on Thursday that Japan faces no constraints on intervention frequency, noting authorities reportedly intervened during the Golden Week holiday following an April 30 operation.
- Analysts remain skeptical of intervention efficacy without monetary policy shifts; expert Jesper Koll warned the strategy resembles 'tapping the brake while keeping your right foot firmly on the accelerator.'
- US Treasury Secretary Scott Bessent will visit Tokyo next week to discuss currency moves with Japanese counterpart Satsuki Katayama, as markets watch for signals on potential Bank of Japan policy shifts.
22 Articles
22 Articles
Japan may have spent $32 billion in additional yen-buying intervention
Japan may have spent as much as 5.01 trillion yen ($32.06 billion) in its latest efforts to bolster its embattled currency, central bank data indicated on Thursday, signalling repeated bouts of intervention in markets.
On April 30, as the yen weakened to 160 yen to the dollar, a large-scale "yen buying" intervention was carried out in the foreign exchange market. Furthermore, Finance Minister Mimura stated that he "recognizes there are no rules limiting the number of interventions," among other news regarding "foreign exchange intervention"…
The Japanese government has reportedly intervened massively on the foreign exchange market in recent days in order to stop the fall of the yen against the dollar. According to several local media, Tokyo has mobilized approximately 10,000 billion yen, or more than 54 billion euros, a level that has been unprecedented for almost two years.
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