Huo Xing Finance reports that on August 3, Japan’s Minister of Finance, Satsuki Katayama, confirmed that the Japanese government intervened in the foreign exchange market last Friday. Market analysis suggests that Japanese authorities may have spent approximately ¥5.33 trillion (about $34 billion) to buy yen, making this the largest single-month forex intervention on record. Bloomberg, based on data from the Bank of Japan’s accounts and market forecasts, estimates the intervention amount on Friday at around ¥5.33 trillion. If confirmed, this would bring Japan’s recent cumulative intervention total beyond the previous record of ¥11.73 trillion. Previously, on Thursday, Japanese authorities are estimated to have deployed approximately ¥8.45 trillion in support of the yen, potentially marking the largest single-day forex intervention in Japanese history. This intervention followed a surge in the USD/JPY exchange rate to 164, a level not seen since 1986. Japan’s purchase of yen aims to counter speculative short positions and stabilize exchange rate movements. The U.S. Treasury also participated in efforts to support the yen, regarded as the closest monetary policy coordination between Japan and the U.S. in 15 years. U.S. Treasury Secretary Bessent stated that the U.S. would not rule out further market intervention, and President Trump expressed his support. Market participants expect further actions from Japanese authorities. Traders are also closely monitoring the possibility of a Bank of Japan rate hike in September, as well as the quarterly forex intervention report to be released by Japan’s Finance Ministry this Friday, which will disclose daily intervention details from April to June.
Japan's recent forex intervention reaches a record monthly high of $34 billion.
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Summary
Japan’s Ministry of Finance intervened in the foreign exchange markets on August 3, spending an estimated ¥5.33 trillion ($34 billion) to support the yen, marking a record monthly high. This follows a ¥8.45 trillion intervention earlier in the week, potentially the largest single-day intervention on record. The U.S. Treasury reportedly joined the effort, signaling closer coordination under the G7’s currency stabilization framework. With the dollar reaching ¥164, Japan aims to curb speculative bets against risk-on assets. The Bank of Japan may act in September, while a quarterly foreign exchange report is due shortly.
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