Overview
- Japan stepped into currency markets in several bursts during the early May holidays after an April 30 operation, with total spending near ¥10 trillion by Reuters’ reading of Bank of Japan data.
- Top currency official Atsushi Mimura said Japan faces no limit on how often it can act and said he talks with U.S. officials every day.
- U.S. Treasury Secretary Scott Bessent will visit next week to meet senior Japanese leaders, a trip investors view as a possible signal of U.S. tolerance for Japan’s defense of the yen.
- The Bank of Japan has highlighted inflation risks from a weak currency and has left the door open to a possible June rate increase that could reinforce the interventions.
- Higher oil prices tied to the Iran conflict have pushed up Japan’s import costs, which means a weaker yen hits fuel and food prices paid by households and businesses.