Japan spends record amount on currency intervention.

The Japanese government spent 11.73 trillion yen (approximately $74 billion) to intervene in the foreign exchange market between April 28 and May 28, the highest amount ever recorded in a single month, in order to support the yen, which was under strong downward pressure.

A 10,000 yen banknote in Yokosuka city, Kanagawa prefecture (Japan). Photo: AFP/VNA

Figures released by Japan's Ministry of Finance on May 29th mark the first time Tokyo has officially confirmed the interventions that have been speculated in the market recently amid increased global financial volatility due to tensions in the Middle East. The scale of this intervention far exceeds the previous record of 9.79 trillion yen spent over two days in April and May 2024. However, Japanese authorities did not disclose details of each day of the intervention.

Investors believe the Japanese government acted on April 30th, when the yen unexpectedly surged from above 160 yen per USD to around 155 yen/USD in a short period. Subsequently, the market witnessed further rapid increases in the yen's value on May 1st, 4th, and 6th, from around 157 yen/USD to approximately 155 yen/USD, further fueling speculation that Tokyo continued selling USD to support its domestic currency.

The sharp fluctuations occurred during Japan's Golden Week holiday, a time when liquidity in the foreign exchange market is typically lower than usual, making exchange rates more susceptible to volatility.
Although the yen briefly rose to around 155 yen/USD on May 6th – its strongest level since late February – the effects of the intervention measures did not seem to last. By May 29th, the yen had weakened again and was trading mostly around 159 yen/USD.

Source: https://baotintuc.vn/thi-truong-tien-te/nhat-ban-chi-ky-luc-de-can-thiep-ty-gia-20260529214612192.htm