Japan's Ministry of Finance released data on May 31 showing that the total value of yen-buying interventions from April 26 to May 29 reached an unprecedented level. Specifically, Japan spent more than 9 trillion yen (approximately $60 billion) on this activity, surpassing the previous record set in September 2022.
The intervention came after the yen repeatedly fell to 34-year lows against the U.S. dollar, dropping below 160 yen per dollar. The Japanese government is concerned that a weak yen increases the cost of importing energy and food, putting pressure on people's livelihoods.
On May 1, the yen suddenly surged to around 153 yen per dollar after hitting 160 yen per dollar, suggesting that Tokyo authorities may have intervened.
In the past, Japan's largest yen-buying intervention was in October 2022, with total costs of around 5.5 trillion yen. Japanese Finance Minister Shunichi Suzuki stated: “We will continue to monitor the market closely and are ready to take appropriate measures to counter excessive volatility.”
Analysts noted that while record interventions may temporarily support the yen, pressure from interest rate differentials between Japan and the U.S. still makes a strong recovery for the yen difficult.
