Japan Unleashes Massive Yen Intervention Amid Dollar Slump
The Japanese Finance Ministry and the Bank of Japan spent a record-breaking amount to support the yen on April 30. The outlay of more than 6.2 trillion yen, or approximately 40 billion dollars, was the largest single-day intervention since such data became available in 1991.
The Japanese authorities intervened between April 30 and May 6, funneling a total of 11.7 trillion yen into the market. The currency had weakened to the 160-level against the dollar on April 30 but strengthened to the mid-155-level at one point due to the intervention.
However, the yen began to retreat again and hovered at a nearly 40-year low late last month. This prompted Japanese authorities to intervene once more on July 30, with financial authorities in the United States joining them to support the currency.