BOJ Data Suggests No Intervention as Yen Surges
Japan's central bank data suggests that the country may not have intervened in the foreign exchange market on Monday, despite a sudden surge in the yen. The Bank of Japan's projection for money market conditions pointed to a shortfall of ¥3.38 trillion versus brokerage forecasts of between ¥2.32 trillion and ¥2.6 trillion.
On Tuesday, data did not indicate a large outflow in the central bank's current account balances, which is typically interpreted as correlating with the size of any intervention.
The yen jumped to its strongest level in about three months on Monday, reaching 155.20 per dollar. Traders had been anticipating further intervention by authorities after Japan's finance ministry confirmed joint yen-buying intervention with the United States on Friday.
According to Bank of Japan data, Tokyo may have spent as much as $36.58 billion buying yen to strengthen the currency.