Japan Spends Record $96 Billion on Yen Interventions

The Japanese government spent a record $96 billion on yen interventions between late July and late August to boost the currency's value. According to the finance ministry, this is the largest monthly intervention on record.

The Bank of Japan intervenes in the market under the instruction of the ministry to ease economic damage from sharp fluctuations in exchange rates. The yen has been weakening due to a gap between Japanese and US interest rates, high oil prices, and concerns about Prime Minister Sanae Takaichi's spending plans further swelling Tokyo's enormous debts.

The finance ministry data released on Friday showed that the market interventions happened between July 30 and August 26. On July 31, Tokyo and Washington carried out their first joint intervention in 28 years to boost the yen, which had hit a four-decade low of 163.99 per dollar last month.

US President Donald Trump confirmed the concerted action aboard Air Force One early this month, calling it a 'signal of friendship' with Japan and 'good for the world economy'. The operation to buy yen came after the unit soared to 157.40, its strongest since early May.