On May 31, Japan's Finance Ministry confirmed it spent a total of 11.73 trillion yen (about $74.4 billion) to intervene in the foreign exchange market during April and May. This is the first time the agency has disclosed the details of its intervention activity after weeks of market speculation.
According to the announcement, the intervention operations took place on April 29 and May 4, when the yen fell to its lowest level in 24 years against the U.S. dollar, breaching the 150 yen per dollar threshold. Japan's Finance Ministry stated the goal was to prevent excessive volatility and support the domestic economy.
The move comes as the Bank of Japan (BOJ) maintains an ultra-loose monetary policy, widening the interest rate gap between Japan and the United States and putting strong downward pressure on the yen. Analysts noted the spending figure was higher than expected, reflecting the government's determination to protect the national currency.
Finance Minister Shunichi Suzuki declined to comment on the intervention strategy in detail but affirmed that Japan is ready to take decisive action if the market experiences abnormal fluctuations. The Finance Ministry will compile and release detailed transaction data at the end of June.
