Japan Deploys Record Intervention, USD/JPY Tumbles Below 160

Japanese authorities launched an unprecedented foreign exchange market intervention on July 31, deploying approximately USD 52.8 billion to support the yen.

The massive operation, which exceeded USD 50 billion this week, drove the yen to its largest single-day gain in nearly three years and sent the dollar-yen exchange rate below 160.

The intervention was not unilateral; it was part of a coordinated effort with the U.S. to stabilize the exchange rate.

The Bank of Japan's dovish policy decision, keeping interest rates unchanged at 1%, fueled the yen's rebound and pushed the USD/JPY back above 160.