Japan Sets Record Yen Intervention as Pressure Persists

Japanese authorities intervened in foreign exchange markets for a record single-day yen-buying operation in April, selling US$40 billion of their currency reserves. This move was part of massive yen-buying operations to stem the yen's slide. The intervention helped lift the yen from a near two-year low of 160.725 per dollar to around 155 by May 6, but did not reverse the currency's broader downtrend.

The largest operation amounted to 6.28 trillion yen (US$39.64 billion) on April 30, surpassing the previous single-day record of 5.92 trillion yen set on April 29, 2024. The intervention was conducted over three days from April 30 through May 6, when market liquidity was thin due to Golden Week public holidays.

The yen resumed its downturn, sliding to 40-year lows below 163 per dollar in July, prompting Japan to intervene again last week, this time in coordination with the US. Central bank data indicated Japan may have spent as much as $58.97 billion on July 30 and $36.58 billion on the following day in potentially the largest-ever yen-buying intervention.