Key facts
- Japan's government and the Bank of Japan intervened in foreign exchange markets on Thursday, July 30, to support the yen.
- The intervention involved buying yen and selling U.S. dollars.
- U.S. authorities conducted a "rate check" as a preparatory step for intervention.
- The yen surged sharply, briefly trading in the 157 yen-to-the-dollar range.
- Preliminary data suggests the intervention may have totaled between $37.5 billion and $44 billion.
Preliminary money market data from the Bank of Japan indicates that Japan may have intervened in foreign exchange markets on Thursday, July 30, to the tune of 6 trillion to 7 trillion yen ($37.5 billion to $44 billion). This move followed a sharp 3% jump in the yen against the U.S. dollar in early New York trading that same day.
Market participants reported that the Japanese government intervened to buy yen and sell dollars, while U.S. authorities executed a "rate check," a common preliminary step before intervention. The yen surged significantly, briefly reaching the 157 yen-to-the-dollar range.
According to interviews with Japanese government officials, the intervention aimed to shore up the weak yen. Atsushi Mimura, vice minister of finance for international affairs, emphasized the government's close coordination with the U.S. authorities, stating Japan received support "beyond mere moral support."
This intervention follows a record 11.7 trillion yen ($73 billion) in currency intervention conducted between late April and late May, when the yen also experienced temporary surges.