TOKYO: Japanese authorities spent 11.7 trillion yen (USD73.5 billion) intervening in foreign exchange markets over the past month to support the yen, but with only limited effect as the currency hovers near the same levels that prompted Tokyo to act.
Ministry of Finance data released on Friday confirmed traders’ suspicions that officials entered the market at the turn of the month, likely on multiple occasions during Japan’s Golden Week holidays, when market liquidity was thin. Tokyo acted as the yen dropped past 160 per dollar, the same level that triggered record dollar-selling intervention in 2024.
On April 30 this year, the yen surged from as weak as 160.725 - a nearly two-year low - to as strong as 155.50. It extended gains to around 155 by May 6, but later resumed its decline, weakening to about 159.65 on Thursday.
The yen has been battered by the Middle East crisis, as soaring energy prices deliver a terms-of-trade shock to Japan, which imports almost all of its oil. That pressure has compounded a longer-term weakening trend amid the Bank of Japan’s cautious approach to monetary normalisation after a decade of heavy stimulus.
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