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Japan's top currency official said on August 1 that he agrees with the BOJ's stance as markets watch for possible intervention. The comment came amid sharp yen swings and repeated warnings from authorities about taking action against excessive market moves, highlighting close coordination between the Finance Ministry and central bank.
Japan and the US have confirmed a rare coordinated intervention to buy the yen, halting its slide to 40-year lows. US President Donald Trump said supporting the yen reflects friendship between the two allies.
Bank of Japan Governor Kazuo Ueda said on July 25 that the weak yen is a 'key factor' in assessing upside risks to inflation, fueling expectations of further monetary policy adjustments. His remarks come as the yen remains under pressure, boosting import costs and consumer prices.
Japanese authorities stepped into the foreign exchange market on July 25, buying yen and selling dollars to counter the currency's slide as it hit 39-year lows. The intervention follows ineffective verbal warnings and marks Tokyo's latest effort to stabilize the currency.
The Bank of Japan may accelerate interest rate hikes as a weak yen and surging oil prices stoke inflation risks, economists warn. The yen hit a 31-year low, while global oil price rises drive up import costs, prompting forecasts of a rate move as early as next quarter.
Japan's Finance Ministry confirmed on May 31 that it spent a total of 11.73 trillion yen ($74.4 billion) on foreign exchange intervention in April and May, the first detailed disclosure after weeks of market speculation. The operations occurred on April 29 and May 4 when the yen hit a 24-year low against the U.S. dollar, surpassing 150 yen per dollar. Analysts said the spending was higher than expected, showing the government's commitment to stabilizing the yen amid the BOJ's ultra-loose monetary policy.
Japan's Nikkei index fell more than 2% on May 11, driven by a sell-off in large-cap technology stocks amid global sector concerns and a strengthening yen. The broader Topix index also dropped over 1.5%. Analysts linked the decline to weak U.S. tech earnings and currency headwinds for exporters.
Japan's current account surplus hit 4.68 trillion yen ($40.6 billion) in March 2026, far exceeding forecasts. The surplus was driven by strong exports of high-tech goods and automobiles, as well as robust investment income from overseas holdings.
