Japan spent a record ¥9.8 trillion ($62.2 billion) in the past month to prop up the yen after it fell to a 34-year low against the dollar, surpassing the total amount it used in 2022 to defend the currency.
The finance ministry disclosed figures Friday for the period between April 26 and May 29. The amount exceeded earlier
estimates of ¥9.4 trillion based on a comparison of the Bank of Japan’s accounts and money broker forecasts. Japan’s previous monthly intervention record of ¥9.1 trillion was set in very different circumstances when authorities were trying to weaken the yen in autumn 2011.
The record spending on intervention shows the commitment of Japan’s government to push back against speculators betting against the yen. The huge amount also underscores the scale of action required to have even a short-lived impact on the market and the gradually diminishing power of its salvos to defend the currency.
“The amount feels a touch on the large side, but it’s largely in the expected range,” said Hirofumi Suzuki, chief FX strategist at Sumitomo Mitsui Banking Corp. “It didn’t top ¥10 trillion so it doesn’t feel too big and the dollar-yen pair isn’t actually reacting much.”
The yen was down about 0.3% at 157.25 versus the dollar at 7:20 p.m. in Tokyo time, little changed from where it was before the data release.
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