[Photo=Reuters·Yonhap]
Japan moved to support the yen by intervening in the foreign exchange market, selling U.S. dollars and buying yen. It was Japan’s first market intervention in about 22 months, since July 2024, when the yen-dollar rate rose to 161.7 yen.
Kyodo News and other foreign media reported on May 1, citing a Japanese government official, that the government intervened on April 30. Japanese media, based on projections for the Bank of Japan’s current account balances, estimated the yen-buying operation at 5 trillion yen (about 47 trillion won).
A Finance Ministry official declined to answer direct questions about intervention. Asked whether the ministry still believes speculative moves are continuing in the currency market, the official said, “Yes.” On cooperation with the United States, the official said Japan is “in close contact, sharing our understanding of the situation and our actions.”
A day earlier, Japan’s currency authorities warned that “decisive action” against yen weakness was imminent, saying it was a “final warning.” After the strong verbal warning, the yen strengthened sharply, with the yen-dollar rate falling from around 160 yen to about 155 yen. The rate remained volatile on May 1, trading around 157 yen before slipping back into the 155-yen range around 4 p.m.
Japan last intervened in July 2024, when the operation totaled 5.5348 trillion yen (about 52 trillion won) over two days.
Kyodo News and other foreign media reported on May 1, citing a Japanese government official, that the government intervened on April 30. Japanese media, based on projections for the Bank of Japan’s current account balances, estimated the yen-buying operation at 5 trillion yen (about 47 trillion won).
A Finance Ministry official declined to answer direct questions about intervention. Asked whether the ministry still believes speculative moves are continuing in the currency market, the official said, “Yes.” On cooperation with the United States, the official said Japan is “in close contact, sharing our understanding of the situation and our actions.”
A day earlier, Japan’s currency authorities warned that “decisive action” against yen weakness was imminent, saying it was a “final warning.” After the strong verbal warning, the yen strengthened sharply, with the yen-dollar rate falling from around 160 yen to about 155 yen. The rate remained volatile on May 1, trading around 157 yen before slipping back into the 155-yen range around 4 p.m.
Japan last intervened in July 2024, when the operation totaled 5.5348 trillion yen (about 52 trillion won) over two days.
* This article has been translated by AI.
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