Japan spent record 15.4 trillion yen to support yen

Japanese authorities spent a record 15.4 trillion yen, equivalent to approximately $96.5 billion, intervening in foreign exchange markets over the past month to support the yen, according to Finance Ministry data released on Friday. The operation, which ran from July 30 to August 26, represents Tokyo's most aggressive effort to defend its currency as it languished near four-decade lows against the dollar. The intervention was triggered when the yen weakened to around 164 per U.S. dollar, a level that prompted a coordinated response. On July 30 and 31, the Bank of Japan entered the market in a rare joint action with the United States, while the Bank of Korea simultaneously purchased won to amplify the effect. This marked the first such coordinated intervention between the U.S. and Japan in decades. Early data suggests the initial July 30 operation alone may have reached 9.6 trillion yen, which would far exceed the previous single-day record of 6.3 trillion yen set on April 30 of this year. The immediate impact was significant. The yen strengthened sharply from around 163 per dollar to as strong as 155.20 by August 3.