Japan Authorities Buy 5 Trillion Yen in Coordinated Forex Intervention

Japanese authorities are believed to have carried out a coordinated foreign exchange market intervention with the United States, buying around 5 trillion yen to prop up the Japanese currency.

The intervention is estimated based on Bank of Japan data released Monday on changes in commercial financial institutions' current account deposits at the central bank.

Market sources indicate that the discrepancy between the central bank data and market estimates not taking the intervention into account represents an amount of over 5 trillion yen, with a possible range of 4.5 to 6 trillion yen.