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Japan Reports No Yen Intervention for Month Despite Market Signals

Officials signal readiness to coordinate with the United States if conditions warrant.

Banknotes of Japanese yen are seen in this illustration picture taken September 22, 2022. REUTERS/Florence Lo/Illustration/File Photo

Overview

  • Ministry of Finance data show zero FX spending from Dec. 29 to Jan. 28, confirming reliance on verbal warnings.
  • Bank of Japan money market figures did not display the large outflows typically associated with direct intervention.
  • Reports of rate checks in Tokyo and Washington remain unconfirmed as Finance Minister Satsuki Katayama and top diplomat Atsushi Mimura decline comment.
  • The yen traded around 153.79 per dollar after a Jan. 23 jump of about 1.7% following a BOJ decision.
  • Tokyo retains $1.16 trillion in reserves as currency volatility intensifies ahead of the Feb. 8 snap election.