BlockBeats report: On August 3, Japan's Finance Minister Katsunobu Kato 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 intervention the largest single-month forex intervention on record.
Bloomberg, based on data from the Bank of Japan's accounts and market forecasts, estimates that Japan's intervention amount last Friday was approximately ¥5.33 trillion. If confirmed, this would bring Japan’s recent cumulative intervention total, including prior actions, beyond the previous record of ¥11.73 trillion.
Previously, Japanese authorities are estimated to have injected approximately ¥8.45 trillion to support the yen last Thursday, potentially becoming the largest single-day foreign exchange intervention in Japanese history.
This intervention occurred after the U.S. dollar against the yen rose to 164, reaching a high not seen since 1986. Japan intervened by buying yen to counter speculative short positions and stabilize exchange rate movements.
The U.S. Treasury previously participated in efforts to support the yen, regarded as the closest monetary policy coordination between the U.S. and Japan in 15 years. U.S. Treasury Secretary Bessent stated that the U.S. does not rule out further market intervention, and President Trump has expressed support for this stance.
Market participants expect Japanese authorities may still take further action. Traders are also monitoring the possibility of a September rate hike by the Bank of Japan, as well as the quarterly foreign exchange intervention report to be released by Japan’s Ministry of Finance this Friday, which will disclose daily intervention details from April to June.