Japan Intervenes in Foreign Exchange Market to Support Yen

The Japanese government and the Bank of Japan intervened in the foreign exchange market on July 30 to support the yen, buying yen and selling US dollars. This move came after a sharp rise in the yen's value against the dollar in the New York market.

According to Japanese government officials, US authorities had also conducted a 'rate check' before the intervention, asking financial institutions about exchange rate levels as a preparatory step.

The intervention was successful, with the yen surging by 5 yen against the dollar within a short period. This is not the first time Japan has intervened in the foreign exchange market; it also did so on April 30 after the yen fell to the upper 160 yen range against the dollar.