Japan Spends 11.7 Trillion Yen on Currency Intervention
Japan spent 11.7 trillion yen on intervention recently. Tokyo officials remain ready to act as the currency drifts back toward the 160 per dollar level.
Japan spent 11.7 trillion yen ($73.68 billion) on currency intervention between late April and late May to support the yen. The USD/JPY pair reached 159.65 on Thursday, returning to levels that triggered Tokyo's previous market entry. Traders are now testing the government's $1 trillion reserve capacity and its political resolve to defend the 160-per-dollar line.
Japan deployed 11.7 trillion yen ($73.68 billion) to prop up its currency between April 28 and May 27, the Ministry of Finance confirmed Friday morning. While the sum represents a fraction of its $1 trillion in foreign reserves, speculators are increasing bets against the yen. Daisaku Ueno, chief foreign exchange strategist at Mitsubishi UFJ Morgan Stanley Securities, said shrinking reserves make the nation more vulnerable to market pressure.
