TOKYO — Official data released Wednesday confirmed that Japanese authorities spent 5.53 trillion yen ($36.8 billion) in July to support the yen. The move follows a period of significant volatility in the currency.
Japan's Ministry of Finance provided data covering the period from June 27 to July 29, revealing that the amount of intervention met market expectations. The move came after several warnings from Japanese officials about potential measures to address the currency's erratic movements.
Japan's recent foreign exchange intervention follows the yen's plunge to a 38-year low against the U.S. dollar. In late May, the government acknowledged the first round of currency interventions since October 2022.
In response to the yen's depreciation, the Bank of Japan (BOJ) on Wednesday raised its benchmark interest rate to “around 0.25%” from a previous range of 0% to 0.1%. This adjustment marks the highest interest rate set by the BOJ since 2008.
Following the BOJ decision, the yen rallied significantly, trading around 150 per dollar. This was a notable improvement from the start of the month, when the yen hit 161.96 per dollar, its lowest level since December 1986.
The yen has been under continuous pressure since the BOJ ended its negative interest rate policy in March.
