BOJ Accounts Point to No Intervention as Yen Ripples Continue

The Bank of Japan's (BOJ) latest account numbers suggest that Tokyo did not intervene in the foreign exchange market this week, despite a brief dip in the dollar against the yen. According to data from BOJ accounts, the difference between the projected ¥410 billion drop in the yen and the average slide of ¥700 billion was too small to indicate a major intervention like the one seen last month.

Yuichiro Takai from Totan Research noted that 'it makes sense to view this as no intervention took place.' Historically, even small currency swings have often reflected traders' expectations of potential action rather than actual orders from Tokyo. A brief dip in the dollar against the yen mid-week sparked speculation about a possible BOJ intervention, but it was short-lived.

Market expectations suggest that the BOJ will lift interest rates in September, with some analysts predicting an outsized move. US Treasury Secretary Scott Bessent has been a vocal proponent of rate increases, which has reinforced the view that the BOJ will follow suit. BOJ officials have signaled their resolve to push back against further yen weakness.