(Bloomberg) — Japanese authorities likely used another $30 billion intervening in the currency market just days after an earlier round of action, according to a Bloomberg analysis of central bank accounts, in the latest indication of their resolve to support the yen.
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The size of the entry into the market was probably around ¥4.68 trillion, based on a comparison of Bank of Japan accounts released Thursday and money broker forecasts. Thursday was the first business day after the Golden Week holidays through Wednesday.
Authorities earlier spent an estimated ¥3.86 trillion ($24.7 billion) supporting the yen on April 30, based on a similar calculation using BOJ account data that was revised down on Thursday.
It’s unclear from the latest figures whether there were multiple interventions since the end of last week or on what day such action might have taken place, although a sharp rise in the yen on Wednesday was among moves that generated speculation officials were in the market.
Thursday’s report underscores the Finance Ministry’s determination to deter speculators from betting against the yen, and to keep the currency from weakening past the key threshold of 160 per dollar — a level close to where officials entered the market on several occasions in 2024.
The figures show that the government likely stepped into the market on Friday and then at some point between Monday and Wednesday, according to Tsuyoshi Ueno, chief economist at NLI Research Institute.
“This round of intervention appears to have been effective, as fear is lingering in the market and traders remain on high alert,” Ueno said.
Bessent Visit
Still, the move shows that Tokyo is having to keep digging deep to keep speculators at bay. It also comes at an awkward time, ahead of a visit by US Treasury Secretary Scott Bessent. While Bessent helped Japan to strengthen the yen during an earlier bout of weakness in January, he has hinted at the need for faster interest-rate increases by the BOJ as the main way to stabilize the yen.
The central bank’s next meeting takes place in June. While markets are pricing in a 72% likelihood that the BOJ will raise rates then, according to overnight swaps, Finance Ministry officials will still need to keep speculators in line in the meantime.
