Japan spent a record ¥9.8 trillion ($62.2 billion) last month to prop up the yen after it hit a 34-year low against the dollar. This surpassed the total amount it used to defend the currency in 2022.
The Ministry of Finance published figures on Friday for the period between April 26 and May 29. The amount exceeded previous estimates of ¥9.4 trillion, based on a comparison of the Bank of Japan’s accounts and money brokers’ forecasts. Japan’s previous monthly intervention record of ¥9.1 trillion was set under very different circumstances, when authorities tried to weaken the yen in the fall of 2011.
The record spending on interventions shows the government’s determination to push back against speculators betting on the yen. The huge amount also underlines the scale of action required to have even a short-lived impact on the market, and the gradually diminishing power of the salvos to defend the currency.
