Power of a dollar, Japan suspected of $34.5 billion currency intervention to support yen

Japanese authorities likely spent approximately $34.5 billion on Thursday to support the yen, according to a Bloomberg analysis comparing Bank of Japan accounts with money broker forecasts.

The suspected intervention occurred after the yen fell to 160.72 against the US dollar, its weakest level since mid-2024, before sharply reversing course.

If confirmed, this would represent Japan’s first currency market intervention since July 2024. The estimated ¥5.4 trillion expenditure exceeds the ¥3.8 trillion average spent across four separate interventions in 2024.

The move marks the first market intervention under Prime Minister Sanae Takaichi and Finance Minister Satsuki Katayama, suggesting the new administration’s tolerance for yen weakness aligns with previous policies.

Japan’s top currency official, Atsushi Mimura, declined to comment Friday on the suspected market activity. A source familiar with the situation confirmed to Bloomberg that the government did intervene.