Japan Drops Record $40 Billion to Bolster Weakened Yen

The Japanese Finance Ministry and Bank of Japan spent a record amount to support the yen on April 30. The outlay was over 6.2 trillion yen, or about $40 billion, making it the most significant single-day intervention since such data became available in 1991.

The Japanese authorities intervened between April 30 and May 6, funneling a total of 11.7 trillion yen to support the currency. The yen had weakened to the 160-level against the dollar on April 30 but strengthened to the mid-155-level due to the intervention.

However, the yen started to retreat again and hovered at a nearly 40-year low late last month. Japanese authorities intervened once more on July 30, and this time, they were joined by financial authorities in the United States who also intervened in the market.