Japan Drops Record $96 Billion on Yen Interventions Amid Economic Uncertainty

Japan's finance ministry reported that the country spent a record $96 billion on yen interventions between July 30 and August 26, aiming to ease economic damage from sharp fluctuations in exchange rates. The Bank of Japan intervened under the ministry's instruction to stabilize the currency.

The move came as the yen had been weakening due to a gap between Japanese and U.S. interest rates, high oil prices, and concerns about Prime Minister Sanae Takaichi's spending plans further swelling Tokyo's enormous debts.

On July 31, Japan and the United States carried out their first joint intervention in 28 years to boost the yen, which had hit a four-decade low of 163.99 per dollar last month.