Japan's Record Forex Interventions: ¥15.39 Trillion to Stabilize Yen

In an unprecedented move, Japanese authorities have poured ¥15.39 trillion into foreign exchange interventions between July 30 and Wednesday, according to the Finance Ministry. This marks the highest monthly expenditure for yen-buying and dollar-selling interventions in history.

The decision follows a significant decline in the yen's value, which had reached alarming levels, with the dollar approaching ¥164—its highest point in nearly 40 years. Although the dollar briefly dipped below ¥158 after interventions, it rebounded to over ¥160 shortly thereafter.

Finance Minister Satsuki Katayama and U.S. Treasury Secretary Scott Bessent announced a joint effort on July 31, the first of its kind in 28 years, emphasizing their commitment to curbing the yen’s depreciation. Despite these efforts, as of Friday, the dollar remained around ¥160, driven by inflation concerns and a widening interest rate gap between Japan and the U.S.

Source: www.japantimes.co.jp