Japan spent $73 billion in yen-buying intervention, ministry data shows
Tweet
Share
E-mail
Holograms, which show different images and colours depending on the angle at which they are viewed, are seen on the new Japanese 5,000 yen banknote as the new note is displayed at a currency museum of the Bank of Japan, on the day the new notes of 10,000
By Kevin Buckland
TOKYO, May 29 (Reuters) - Japanese authorities spent 11.7 trillion yen ($73.5 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.
Friday's figures show only the total amount spent on intervention. A detailed daily breakdown will be released with April-June quarter data, likely in early August.
($1 = 159.2600 yen)
(Reporting by Kevin Buckland in Tokyo. Editing by Mark Potter)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Higher food inflation could constrain spending on non-food items, India report says
- China's Zhipu AI revenue quintuples in first half, loss narrows
- US expected to approve expanded biofuel waivers as early as Monday, sources say
Create E-mail Alert Related Categories
ReutersSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
