Japan Deploys Record $96 Billion to Stem Yen's Slide
The Japanese government has intervened in the currency market for the first time in 15 years to stabilize the yen. In August, Japan spent a record $96 billion on yen-buying operations, exceeding an earlier estimate of around $11 trillion to $12 trillion.
The intervention was prompted by the yen's sharp decline in value, reaching its highest level against the US dollar in over 40 years at 163.99 yen on July 23. The Japanese government stepped into the market on July 30 and followed up with another joint operation with US authorities during New York trading hours on July 31.
The coordinated effort between Japan and the US has temporarily halted the yen's slide, but concerns remain about its impact on inflation. A weaker yen can contribute to higher import costs, which could lead to increased prices for consumers.