Japan Spends Record $96.5 Billion to Support Struggling Yen

Japanese authorities spent a record 15.4 trillion yen (US$96.5 billion) intervening in the foreign-exchange market between July 30 and August 26, according to the Ministry of Finance.

The intervention followed a slide that took the yen close to its weakest level in 40 years, pushing it to around 164 per dollar.

US Treasury Secretary Scott Bessent warned that disorderly currency movements could trigger 'forced unwinds' of positions, destabilising markets worldwide and ultimately raising borrowing costs for US households and businesses.

The Bank of Japan (BOJ) entered the market to buy yen on July 30 and 31, with the United States joining the July 31 operation in a rare joint intervention.