Japan Spends $96.4 Billion in Single Month to Support Yen, Setting Record Intervention Scale

Odaily News - Japan has deployed a record $96.4 billion over the past month to support the yen, after the currency fell to its lowest level in 40 years. This underscores the willingness of Japanese authorities to adopt increasingly aggressive measures to underpin the yen's exchange rate. Data released by Japan's Ministry of Finance on Friday showed that between July 30 and August 26, the government spent a total of 15.4 trillion yen on foreign exchange market intervention, marking a record for monthly intervention spending.

The intervention also received backing from the United States, further signaling to speculators not to bet against the yen. Japanese Finance Minister Katsunobu Kato and U.S. Treasury Secretary Scott Bessent confirmed in early August that the two countries had carried out coordinated intervention on July 31. Both officials stated they were prepared to re-enter the market without hesitation if necessary. The funds deployed by the U.S. were not included in the data released by Japan's Ministry of Finance and are expected to be smaller in scale, but their symbolic significance carries greater weight. (Jin Shi)