Japan Drops Record $96 Billion on Struggling Yen

Japan has taken drastic measures to bolster its currency, the yen, by spending a record $96 billion in support efforts. This massive intervention aims to stabilize the yen after it hit four-decade lows due to exchange rate depreciation.

The scale of the intervention highlights Tokyo's resolve to prevent further losses for Japan's dominant exporters and import costs, including energy. As per Finance Ministry data released on Friday, the country spent a record 15.4 trillion yen in July alone.

Japan's central bank, the Bank of Japan (BOJ), has kept interest rates low compared to other markets like the US, making it an attractive destination for investors seeking cheap yen. The BOJ maintained interest rates in July, but policymakers have hinted at aggressive tightening in the future.