In brief
Japan’s Finance Ministry revealed that it spent a record 7.98 trillion yen—about $50.4 billion—on July 30 to support its currency. The intervention was part of a larger 15.4 trillion yen purchase in the July‑September quarter, marking the most aggressive yen‑buying seen in a single day.
Tokyo, Japan — Japanese authorities on Thursday announced that they spent a record 7.98 trillion yen—about $50.4 billion—in a single‑day foreign‑exchange intervention on July 30 to support the yen against the U.S. dollar.
Record yen‑buying spree
According to data released by the Finance Ministry, the intervention on July 30 was the largest single‑day purchase in the country’s history, a figure confirmed by Xinhua’s reporting of Thursday’s disclosure.
Finance Ministry data also shows that the government bought a total of 15.4 trillion yen in interventions conducted over the July‑September quarter. The purchases were spread over July 30 and 31 and August 3, amounting to the bulk of yen‑buying activity in that period.
The record day‑to‑day operation underscored the ministry’s commitment to prop up the currency amid pressure from market movements. By buying yen, the ministry effectively sold foreign currency from its reserves to raise the yen’s value relative to the dollar.
Kyodo News reported the same figure, noting the 7.98 trillion yen purchase on July 30 and highlighting that the figure represented the largest single‑day intervention ever undertaken by Japan.
According to the Ministry’s data, the 15.4 trillion yen acquired during the quarter constituted the majority of yen‑buying interventions over three months, suggesting a concerted short‑term effort to stabilize the currency.
Market participants, including foreign‑exchange traders and importers, said the intervention would help curb inflationary pressures that can rise when the yen weakens.
Analysts noted that such a sizeable purchase reflects the government’s willingness to intervene heavily in the spot market to influence short‑term exchange‑rate movements.
While the intervention’s size is notable, the Finance Ministry has not indicated whether it will continue such large‑scale actions in the future.
In the days following the Friday disclosure, the yen remained volatile, and investors watched for any further intervention signals from Tokyo that could signal a shift in monetary policy or affect international trade dynamics.
