Economic reports from Japan's Cabinet Office

Japan Spends $35 Billion to Support Yen, Falls to 157.13; Further Interventions Likely

May 1, 2024, 08:31 PM

The Japanese government likely conducted a significant currency intervention on Monday, spending approximately 5 trillion yen ($35 billion) to support the weakening yen, which had fallen to 157.13 against the dollar. This intervention, the first since 2022, was hinted at by various data releases and financial reports. Despite this, the yen's value against the dollar saw only temporary improvement, with subsequent market activities indicating a potential need for further interventions, including a suspected second intervention. The Bank of Japan's involvement, while substantial, has raised concerns about the sustainability of such measures in the face of ongoing economic pressures and market expectations.