Japan Intervenes Record $96.5 Billion to Support Yen Amid Currency Weakness

Japan's Finance Ministry revealed that authorities spent a record $96.5 billion intervening in foreign exchange markets over the past month to support the yen, which has been trading at four-decade lows.

The intervention aims to protect Japan's heavyweight exporters from currency weakness and rising import costs, including for energy imports from the Middle East.

The Bank of Japan (BOJ) entered the market on July 30 and 31, with a rare joint action with the U.S. BOJ data suggests the July 30 intervention could have been as much as $9.6 billion, surpassing the confirmed daily record of $6.3 trillion.

The yen has stabilized around 159.50 since August 10, but Washington has expressed its commitment to supporting Tokyo's efforts to stabilize the currency, with U.S. Treasury Secretary Scott Bessent stating that it will 'do whatever it takes' to support Japan.