Japan's Record-Breaking Yen Intervention Fails to Stem Currency's Downtrend

Japanese authorities stepped up their efforts to stabilize the yen in April by conducting a record-breaking single-day intervention, selling $40 billion of the country's currency reserves. The move, which was part of a larger effort to stem the yen's slide, helped lift the currency from a near two-year low of 160.725 per dollar to around 155 by May 6.

The largest operation amounted to 6.28 trillion yen ($39.64 billion) on April 30, surpassing the previous single-day record of 5.92 trillion yen set on April 29, 2024. The intervention was part of a broader effort that saw authorities intervene on three days from April 30 through May 6, when market liquidity was thin due to Golden Week public holidays.

The yen resumed its downturn in July, sliding to 40-year lows below 163 per dollar, prompting Japan to intervene again last week, this time in coordination with the U.S. Central bank data indicated that Japan may have spent as much as $58.97 billion on July 30 and $36.58 billion on the following day.