Japan Intervenes in Currency Markets for Second Time This Year

The Japanese government and central bank have a long history of intervening in currency markets to influence the value of the yen. The latest intervention occurred on July 30, when the yen jumped more than 3% against the dollar, reaching as high as 157.8 per dollar.

This move follows repeated warnings from Japanese officials that they would intervene without notice if the yen continued to weaken. In April and May, Japan spent a record $72.52 billion on foreign-exchange intervention, helping the yen jump by as much as 3% against the dollar.

The Bank of Japan and the Finance Ministry have intervened in currency markets numerous times since the early 1990s. One notable instance was in October 2022, when they spent $42.8 billion on yen-buying intervention to prop up the currency.