Linked media – Linked media
TOKYO — Official data released on Wednesday confirmed that Japanese authorities spent 5.53 trillion yen ($36.8 billion) in July to bolster the yen. This intervention follows a period of significant currency volatility.
The Japanese Ministry of Finance provided data covering the period from June 27 to July 29, revealing that the intervention amount met market expectations. This move came after numerous warnings from Japanese officials about potential measures to address erratic currency movements.
Japan’s recent intervention in the foreign exchange market follows the yen’s plunge to a 38-year low against the U.S. dollar. In late May, the government acknowledged the first round of currency interventions since October 2022.
In response to the yen’s depreciation, the Bank of Japan (BOJ) raised its benchmark interest rate on Wednesday to “about 0.25%” from the previous range of 0% to 0.1%. This adjustment represents the highest interest rate set by the BOJ since 2008.
Following the BOJ’s decision, the yen experienced a significant recovery, trading around 150 to the dollar. This was a notable improvement from earlier in the month when the yen hit 161.96 to the dollar, its lowest level since December 1986.
The yen has been under continuous pressure since the BOJ ended its negative interest rate policy in March.
Connected media – Associated media
