Japan Spent Record $62 Billion to Support the Yen Last Month
In a determined but ultimately unsuccessful attempt to stabilize its weakening currency, Japan’s authorities spent a record 9.79 trillion yen ($62.23 billion) between April 26 and May 29. This significant intervention in the foreign exchange market aimed to prop up the yen, which had been falling precipitously. Despite this substantial expenditure, the efforts failed to make a lasting impact, and the yen continues to hover near crucial lows. The recent intervention surpassed Japan’s previous record of 9.1 trillion yen, which was spent over three days between September and October 2022. Daisaku Ueno, chief FX strategist at Mitsubishi UFJ Morgan Stanley Securities, noted that this larger-than-expected intervention underscores Japan's determination to mitigate the effects of imported inflation. He also indicated that authorities might continue to make substantial interventions in the future. Data released by Japan’s Ministry of Finance on Friday confirmed that Tokyo...
