Japan Drops Record $40 Billion in Forex Intervention

Japan's Finance Ministry revealed that on April 30th, it spent a record ¥6.28 trillion ($40 billion) in forex intervention to stem the yen's slide. This massive injection was part of a series of market operations aimed at supporting the Japanese currency.

The ministry also disclosed that Japan spent an additional ¥780.2 billion on May 4 and ¥4.68 trillion on May 6, during trading volume was relatively thin due to Japan's Golden Week holidays.

These interventions sent the dollar sharply lower to the 155 yen range from the upper 160 yen zone but later rallied back to 163.99, its highest in around 40 years, in late July.

Japan's operations are estimated at around ¥11 trillion to ¥12 trillion over the two-day period on July 30 and 31 when Japanese authorities coordinated with U.S. authorities for the first time since 15 years.