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Market Chatter: Japan Spent Record 11.73 Trillion Yen on Currency Intervention Over the Past Month

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Japan deployed a record 11.73 trillion yen in market intervention over the four weeks through May 27 to prop up the yen after the currency tumbled past 160 per dollar, Bloomberg News reported on Saturday, citing Finance Ministry data.

The total exceeded market expectations based on central bank flow data, and marked the government's first such action since 2024, said the news wire.

A strategist at SMBC Nikko Securities noted that even with undisclosed action, the yen's continued weakness may strengthen arguments about the limitations of unilateral intervention, the publication said.

More precise details on the timing and size of each operation are expected in early August when the ministry releases second-quarter figures, the report said.

Next week's reserves data could reveal whether Japan sold US Treasury holdings to fund the purchases, a move that might concern US Treasury Secretary Scott Bessent due to potential upward pressure on American yields, it added.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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