Japan's Record-Breaking $96B Yen Intervention Shakes Currency Markets

Japan's central bank has made its largest intervention in history to prop up the yen, spending an unprecedented $96.4 billion over four weeks to stabilize the currency.

This move breaks the previous record set in May when officials spent ¥11.73 trillion during a market holiday, and highlights the severe strain that excessive yen weakness is placing on Japan's traditionally export-driven economy.

The country's currency had fallen to nearly 164 against the dollar, its weakest level in four decades, making imports expensive for Japanese consumers and businesses.

To combat this, Tokyo introduced a new tactic: intervening before a central bank meeting rather than waiting until after. This time, they were joined by the US Treasury Department, which signaled readiness to buy up to $10 billion worth of yen.