Japan Unleashes $96.4 Billion to Support Yen in Record-Breaking Intervention
Japan intervened in the foreign exchange market on an unprecedented scale over the past month, deploying a record-breaking $96.4 billion to support the yen.
The move, which was confirmed by Japanese Finance Minister Satsuki Katayama and US Treasury Secretary Scott Bessent, marked the first joint intervention between the two countries in 28 years.
According to data released by Japan's Ministry of Finance, the government spent a total of 15.4 trillion yen (approximately $96.4 billion) intervening in the FX market between July 30 and August 26.
The intervention was carried out in two tranches: approximately 8.45 trillion yen on July 30 and another 5.3 trillion yen the following day, resulting in a sharp rise in the yen observed on August 1.
Rinto Maruyama, Senior Interest Rate and FX Strategist at SMBC Nikko Securities, noted that 'This is a huge figure.' He added that despite the intervention, the underlying pressure weakening the yen remains quite strong.