Japan's Massive FX Intervention Fails to Boost Yen

The Japanese government's intervention in the foreign exchange market has been a topic of interest. The Ministry of Finance reported that from April 30 to May 6, the government invested up to $40 billion per day in an effort to defend the yen's price.

The largest daily record was set on April 30, with an intervention worth 6.28 trillion yen ($39.64 billion). This surpassed the previous maximum of 5.92 trillion yen on April 29, 2024.

Despite the large-scale intervention, the yen's value only temporarily rose and eventually weakened again. By May 6, the yen had fallen to around 155 yen per dollar, but later dropped to a 40-year low above 163 yen per dollar in July.