Yen Plummets Despite Massive Intervention

The yen continues to plummet despite significant intervention by the US and Japan. In April, Japan spent nearly $74 billion to support the yen after two months of sharp drops, but the recovery was short-lived. By July 23, the yen had fallen to its lowest level in about 40 years at 163.99 yen/USD.

The US and Japan coordinated their intervention in the foreign exchange market at the end of July, with Japan alone estimated to have spent approximately $53 billion on July 30th, possibly the largest single-day intervention ever. The currency immediately appreciated, rising from around 164 yen/USD to 155 yen/USD.

However, this boost quickly lost momentum, and less than two weeks later, the yen had fallen back to around 160 yen/USD, erasing about half of the gains achieved after the intervention. The currency is currently trading around 159 yen/USD.