BOJ Drops $87 Billion on Yen Intervention

The Bank of Japan (BOJ) has intervened in the currency market to support the yen, which has been struggling against the US dollar. According to reports, the BOJ spent approximately $87 billion USD on July 30 and 31, marking one of the largest interventions in recent history.

The yen reached a low of 164 to the US dollar on July 30, its weakest level since 1986. In response to the ongoing volatility, Japanese Finance Minister Satsuki Katayama announced that Tokyo and Washington had engaged in coordinated market intervention efforts, including joint yen-buying operations from Thursday night through Saturday morning.

Katayama emphasized that both countries 'will not hesitate to conduct a further joint intervention' if needed. The monetary actions appeared to have a brief impact on the currency markets, with the yen rebounding to the lower 155 yen range against the US dollar on Monday morning, its highest level in nearly three months.