Japan Unleashes $59 Billion Yen-Buying Intervention to Stem Currency Weakness

Japan's central bank may have sold up to $59 billion in yen-buying intervention, according to data released on Friday. This move is aimed at bolstering the currency, which has been weakening due to various economic factors.

The Bank of Japan's projection for money market conditions for the following day suggests an 8.2 trillion yen net outflow of funds, indicating a significant amount of intervention. Brokerage forecasts range between a surplus of 1.4 trillion yen and a shortfall of 1.73 trillion yen, but the BOJ's data suggests a more substantial impact.

This latest effort to stem the yen's weakness comes after Japan conducted a yen-buying, dollar-selling intervention in New York on Thursday, its first such move in three months. The currency has been hitting four-decade lows, threatening to worsen living costs due to the Iran war-driven energy shock.