The Japanese government's foreign exchange market intervention to halt the yen's weakness since last month reached a record 111 trillion won, data showed.
According to the Nihon Keizai Shimbun on the 29th, Japan's Ministry of Finance said the scale of its foreign exchange market intervention from the 28th of last month through the 27th of this month was 11.7349 trillion yen (about 111 trillion won). Nikkei reported that this is the largest intervention ever conducted by the Japanese government in the foreign exchange market during a phase of yen weakness.
When the yen-dollar rate exceeded 160 yen late last month and the yen's value fell sharply, the Japanese government, immediately after strong verbal intervention, moved to intervene in the foreign exchange market by actually buying yen and selling U.S. dollars. While the specific intervention dates were not disclosed, the government reportedly conducted yen-buying and dollar-selling intervention on the 30th of last month and then intervened intermittently in the market during the Golden Week holiday period earlier this month. This foreign exchange market intervention pushed the yen-dollar rate down to the 155 range, but it has recently returned to the 159 range.
The intervention by Japan's foreign exchange authorities was the first in about one year and nine months since July 2024. The Japanese government previously conducted yen-buying market intervention worth 9.7885 trillion yen (about 92 trillion won) over the two days of April 29 and May 1, 2024, and 5.5348 trillion yen (about 52 trillion won) over the two days of July 11 and 12 of the same year.
