Yen Intervention Loses Half Its Value as Currency Continues to Slide

The record Japanese Yen intervention that was meant to stabilize the currency has already lost half its value. The Dollar currently trades at 159.50 against the Yen, a level almost exactly halfway between the pre-intervention peak of just under 164.00 and the low above 155.00.

Estimates put the opening solo operation near 8.45 trillion Yen in a single session, with roughly 5.3 trillion more the following day alongside the US Treasury. The combined effect was a drop from just short of 164.00 to just above 155.00, close to nine Yen inside two sessions.

The pair now trades at 159.50, which puts four and a half of those nine Yen back into the hands of the people the operation was aimed at. Official buying purchased a level, not a trend.