A source familiar with the matter said Japan likely spent around 4 trillion yen ($26 billion) on suspected currency intervention operations in May, a move aimed at supporting the yen, which has been under pressure against the US dollar.
The information emerges as Japanese financial officials repeatedly warned they would take decisive action to counter excessive exchange-rate volatility. However, officials often do not confirm the intervention at the time, leaving markets to rely on estimates derived from Bank of Japan data and other sources.
If the 4 trillion yen figure is accurate, it would be one of Japan's largest monthly intervention outlays on record. Previous interventions took place in April and October 2024, but this round is considered particularly large as the yen hit multi-decade lows against the dollar.
Japan's Ministry of Finance and the Bank of Japan have yet to comment officially. Analysts say the effects of intervention may be only temporary without clearer policy coordination among major economies.
