TOKYO, 31st May, 2024 (WAM) -- Japan spent 9.79 trillion yen (US$62 billion) between April and May, a monthly record, to slow the yen's rapid fall against the U.S. dollar, government data showed Friday, confirming market views that Japanese authorities intervened in the currency market.
Japanese news agency Kyodo News reported that the amount compares with nearly 9.2 trillion yen Japan spent on multiple yen-buying, dollar-selling operations between September and October of 2022.
The latest data for 26th April through 29th May does not include daily breakdowns, which will be released later.
Japanese authorities have maintained that they would take "appropriate" action against excessive volatility in the foreign exchange market, emphasising that currency moves should be stable and reflect economic fundamentals.
Market speculation over intervention grew after the dollar tumbled by around 5 yen, from a 34-year high of 160 yen to the 154 yen zone in a short span of time on 29th April, a national holiday in Japan.
The U.S. currency also fell about 4 yen in roughly an hour, from 157 yen to 153 yen, after the U.S. Federal Reserve stood pat on monetary policy on 1st May.
Analysts have said any impact of market intervention would be short-lived. The dollar was trading in the lower 157 yen zone on Friday as the official data came out.
Based on data from the Bank of Japan and market sources, the total size of Japan's yen-buying, dollar-selling operations had earlier been estimated at over 8 trillion yen.