Japan Spent Record ¥6.28 TN in Forex Intervention on April 30

Japanese authorities spent a single-day record of 6.28 trillion yen ($40 billion) in a dollar-selling, yen-buying intervention on April 30 to stem the yen’s slide that was followed up by two other market operations within a week, the Finance Ministry said Friday.

The figure, however, was likely exceeded when the authorities stepped into the market on July 30 to support the Japanese currency, with a recent market estimate based on Bank of Japan data suggesting they spent 6 trillion yen to 7 trillion yen.

According to data released Friday on currency market operations between April and June, Japan also spent 780.2 billion yen on May 4 and 4.68 trillion yen on May 6 to prop up the yen.

The latter two interventions took place when trading volume was relatively thin during Japan’s Golden Week holidays.

The April 30 intervention topped the 5.92 trillion yen that Japan spent on April 29, 2024 to support its currency.

In May, ministry data showed that Japan spent a record 11.73 trillion yen from April 28 to May 27, confirming authorities’ intervention for the first time since 2024.

The interventions sent the dollar sharply lower to the 155 yen range from the upper 160 yen zone. But the U.S. currency later rallied back to 163.99, its highest in around 40 years, in late July.

After buying the yen on July 30, Japanese authorities did so again with the U.S. authorities in New York trading hours on July 31, the first coordinated move in 15 years.

Japan’s operations are estimated at around 11 trillion yen to 12 trillion yen over the two-day period.

The yen has remained under selling pressure on concerns that Japan’s fiscal health could worsen further as Prime Minister Sanae Takaichi pursues aggressive fiscal spending despite uncertainties about how it will be funded.

The ministry on Friday also released data on the balance of Japan’s foreign reserve assets at the end of July. The latest interventions in late July are expected be reflected in the data at the end of August.