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Japan Confirms ¥11.7 Trillion Intervention as Yen Returns Near 160

The large but temporary operations raise questions about Tokyo's reserve capacity, U.S. cooperation, IMF norms, or the Bank of Japan's ability to restore the yen.

Yen and U.S. dollar banknotes are seen in this illustration taken March 19, 2025. REUTERS/Dado Ruvic/Illustration
Holograms, which show different images and colours depending on the angle at which they are viewed, are seen on the new Japanese 5,000 yen banknote as the new note is displayed at a currency museum of the Bank of Japan, on the day the new notes of 10,000 yen, 5,000 yen and 1,000 yen went into circulation, in Tokyo, Japan July 3, 2024. REUTERS/Issei Kato/Pool
Image
Ministry of Finance

Overview

  • The Ministry of Finance disclosed Friday that authorities spent ¥11.7 trillion (about $73.5 billion) between April 28 and May 27 buying yen to prop up the currency.
  • The interventions produced sharp, short‑lived gains with the yen sliding back toward the 160-per-dollar area, showing only limited durable effect.
  • Analysts say Japan still has substantial reserves and Goldman Sachs estimates the country could repeat a late‑April sized operation roughly 30 more times, but repeated sales would deplete assets and carry costs.
  • Officials appear to have executed multiple buys during the thin liquidity of Golden Week, a tactic that amplified immediate moves but likely weakened the long‑term signal to markets.
  • Market attention now turns to the Bank of Japan's June policy meeting and diplomatic constraints from U.S. reactions and IMF guidance as the main determinants of whether Tokyo will intervene again or rely on policy shifts.