Japan Spends Record $36B to Stem Yen Decline

The Bank of Japan's (BOJ) money-market data revealed an unusual cash drain, sparking suspicion that Japan spent as much as $36.58 billion to buy yen and slow its slide against the dollar.

According to Reuters, the BOJ's outlook for the next day's cash conditions showed a net outflow of 11.4 trillion yen, far exceeding brokers' expectations.

This unusual movement is being interpreted as a proxy for Japan's yen-buying efforts in the market.

The Japanese finance ministry confirmed that Japan and the US have carried out coordinated yen-buying intervention and may do it again to stabilize the exchange rate near 156.90 yen per $1.