Tokyo's Yen Intervention Hits Record $96.5 Billion Amid Energy Worries

The Japanese government has spent a record-breaking $96.5 billion intervening in foreign exchange markets over the past month to prop up the yen, according to Finance Ministry data released on Friday.

The unprecedented intervention aims to pull the yen away from four-decade lows, which have threatened profits at Japan's large exporters and driven up import costs, including energy prices.

Japan imports nearly all its energy, with 95% coming from the Middle East, making it vulnerable to supply disruptions caused by the Iran war.

The Bank of Japan's relatively slow pace of policy tightening has kept interest rates low, encouraging investors to continue funding global trades with cheap yen.