Japan spent record 15.4 tril. yen in July-Aug. to stem yen's slide
TOKYO (Kyodo) -- Japan spent a record 15.4 trillion yen ($96 billion) over the past month in yen-buying operations to stem its home currency's slide i
In July and August, Japan spent a record-breaking 15.4 trillion yen ($96 billion) on buying the yen to curb its depreciation in the foreign exchange market, according to the Finance Ministry. This surpassed the previous monthly record of 11.73 trillion yen set in April and May, and exceeded an earlier forecast of 11 trillion to 12 trillion yen.
The intervention began on July 30 after the U.S. dollar rose to 163.99 yen, the highest level in nearly 40 years, following concerns over Japan's fiscal health due to Prime Minister Sanae Takaichi's aggressive spending plans with no clear funding strategy.
The joint intervention with U.S. authorities took place on July 31 during New York trading hours, marking the first coordinated move in 15 years. Both governments later confirmed the action. Despite the joint effort, the yen has faced persistent pressure due to worries about Japan's worsening fiscal situation. Meanwhile, the U.S. dollar remains attractive as a safe-haven asset during crises, with uncertainty surrounding the potential resolution of the Iran conflict.
A weaker yen led to a brief dip in the dollar to around 155 yen on July 31, but it has since stabilized around the 159 yen level. A weaker yen can contribute to inflation by increasing the cost of imported goods.
Written by urgent.news from The Mainichi's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
