$53 Billion Yen Intervention: Can Japan Stem the Decline Against the Dollar?

Japan's central bank is suspected of intervening in the foreign exchange market to support the yen. On Thursday, Tokyo bought around ¥8.45 trillion ($52.8 billion) worth of yen and sold dollars, which could mark its largest single-day currency intervention.

The operation came after the yen weakened below 163 per dollar earlier this month, raising concerns over import costs. The Bank of Japan (BOJ) held interest rates at 1% despite speculation of a hike to 1.25%. Finance Minister Satsuki Katayama declined to confirm whether authorities intervened.

U.S. Treasury Secretary Scott Bessent said the yen 'seems very undervalued' and hinted that Washington might have supported Japan's efforts. However, no official statement confirmed direct U.S. involvement in the operation.