Japan spent nearly US$40 billion in a single day to buy yen in April, marking the largest daily currency intervention on record as authorities stepped up efforts to stem the yen’s slide.
The Ministry of Finance (MOF) said on Friday that Japanese authorities intervened in the foreign exchange market on three days between April 30 and May 6, a period when trading liquidity was thinner due to the Golden Week holidays.
The largest operation took place on April 30, when authorities spent 6.28 trillion yen, equivalent to US$39.64 billion, buying the Japanese currency. The amount surpassed the previous daily record of 5.92 trillion yen set on April 29, 2024, based on MOF data going back to 1991.
The latest figures provide a daily breakdown of the 11.7 trillion yen intervention previously disclosed for the period between April 28 and May 27.
Japan’s intervention initially helped strengthen the yen, lifting it from a near two-year low of 160.725 against the US dollar to around 155 by May 6.
The support, however, failed to reverse the yen’s broader decline. The currency subsequently weakened further, falling below 163 per US dollar in July to reach its lowest level in about 40 years.
Tokyo intervened again last week, this time coordinating its efforts with Washington, as authorities sought to put a floor under the yen.
At the time of the latest report, US$1 was equivalent to 158.42 yen.
Reuters
