Japan Likely Spent 4 Trillion Yen on Suspected Currency Intervention in May
Japan is estimated to have spent an additional 4 trillion yen ($25.6 billion) in suspected market interventions during May to support the weakening yen, according to market estimates based on Bank of Japan data. This follows a previous intervention on April 30, bringing the total suspected expenditure for late April and May to approximately 10 trillion yen. Volatile movements in the foreign exchange market, where the yen briefly strengthened to the 155 zone against the U.S. dollar on multiple days, fueled speculation of government action. Atsushi Mimura, Japan’s top currency diplomat, declined to comment on the recent surge. The interventions occur amidst broader geopolitical tensions, including attacks by the United States and Israel on Iran since late February, which have driven investors toward the U.S. dollar as a safe-haven asset. Additionally, elevated crude oil prices resulting from the blocking of the Strait of Hormuz have further strengthened the dollar. This marks the latest in a series of efforts by Japanese authorities to curb rapid yen depreciation, following record spending in 2024. The government had previously issued strong warnings about taking decisive action against speculative currency movements during the Golden Week holiday period.
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Japan Likely Spent 4 Trillion Yen on Suspected Currency Intervention in May
Japan is estimated to have spent an additional 4 trillion yen ($25.6 billion) in suspected market interventions during May to support the weakening yen, according to market estimates based on Bank of Japan data. This follows a previous intervention on April 30, bringing the total suspected expenditure for late April and May to approximately 10 trillion yen. Volatile movements in the foreign exchange market, where the yen briefly strengthened to the 155 zone against the U.S. dollar on multiple days, fueled speculation of government action. Atsushi Mimura, Japan’s top currency diplomat, declined to comment on the recent surge. The interventions occur amidst broader geopolitical tensions, including attacks by the United States and Israel on Iran since late February, which have driven investors toward the U.S. dollar as a safe-haven asset. Additionally, elevated crude oil prices resulting from the blocking of the Strait of Hormuz have further strengthened the dollar. This marks the latest in a series of efforts by Japanese authorities to curb rapid yen depreciation, following record spending in 2024. The government had previously issued strong warnings about taking decisive action against speculative currency movements during the Golden Week holiday period.
The Mainichi