Japan’s May 1 intervention may have cost $23.6 billion, BOJ data suggests
2024.05.02 05:57
By Kevin Buckland
TOKYO (Reuters) – Japanese officials may have spent some 3.66 trillion yen ($23.59 billion) on Wednesday to pull the yen back from near 34-year lows, Bank of Japan data suggested on Thursday.
On Wednesday, the yen was at around 157.55 per dollar when it suddenly spiked, strengthening as far as 153 over the next half hour.
On Monday the finance ministry spent an unprecedented 6 trillion yen or so intervening in the market to prop up the yen after it dropped to 160.245 per dollar for the first time since April 1990, the data showed.
The Ministry of Finance each time declined to say whether or not it was behind the yen rallies, only repeating its readiness to step in at any time to stem disorderly moves.
Currency trades take two business days to settle, and Japanese markets are closed for public holidays this Friday and next Monday.
The central bank’s projection for next Tuesday’s money market conditions indicates a 4.36 trillion yen net receipt of funds, compared with a 700 billion-1.1 trillion yen estimate from money market brokerages that excludes intervention.
($1 = 155.1400 yen)
