The Ministry of Finance has so far remained mum on whether it was behind the yen’s sudden and steep strengthening
Japan may have spent up to 3.57 trillion yen (S$30.11 billion) on Thursday (Jul 11) in its most recent intervention in the foreign exchange market to lift the yen up from 38-year lows, Bank of Japan data suggested on Friday (Jul 12).
The Ministry of Finance appears to have spent around 3.37-3.57 trillion yen intervening in the market on Thursday to support the Japanese currency, the data showed.
On Thursday, the yen had been hovering at about 161.61 per dollar when it sharply appreciated around the release of US consumer price figures, rallying nearly 3 per cent to as far as 157.40. The softer US inflation reading pulled down the dollar.
The Ministry of Finance has so far remained mum on whether it was behind the yen’s sudden and steep strengthening, only repeating authorities’ readiness to take action as needed in the foreign exchange market.
Currency trades take two business days to settle, and Japan’s markets will be closed for a public holiday on July 15.
The central bank’s projection for money market conditions on July 16 indicates a 3.17 trillion yen net receipt of funds, compared with a 200-400 billion yen net credit in estimates from money market brokerages that excludes intervention. REUTERS
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