TOKYO - Japan intervened in the currency market by spending a record 11.73 trillion yen ($74 billion) over the past month, the Finance Ministry said Friday, providing the first official confirmation of recent efforts to shore up the country's currency amid the Middle East conflict.
The amount surpassed the previous monthly record of 9.79 trillion yen spent over two days in April and May 2024, the data covering the period from April 28 to Wednesday showed. No daily breakdown has been released for the latest intervention.
Intervention by Japanese authorities was suspected on April 30 when the yen surged to the 155 zone from the upper 160 range. The unit then weakened, but on May 1, May 4 and May 6, it gained rapidly from the 157 zone to the 155 range, fueling views that the authorities again stepped in.
The volatile currency movements coincided with the Golden Week holidays in Japan, when trading was thin.
While the yen hit its strongest point since late February in the lower 155 zone on May 6, the effectiveness of intervention appears short-lived, as the currency has since declined, changing hands mostly in the lower 159 zone on Friday.
The U.S. currency continues to draw buying as a safer asset at times of crisis with the prospect of a deal to end the Iran war uncertain.
The Japanese currency's rapid fall, partly driven by speculators, raised concerns about its impact on the economy, as it increases import costs for resource-scarce Japan and accelerates inflation.
Ahead of the suspected interventions in April and May, Japanese finance officials had stepped up verbal warnings.
On April 30, Japanese Finance Minister Satsuki Katayama said "decisive action" would be needed against yen declines, while top currency official Atsushi Mimura followed suit calling for "the final evacuation advisory" against speculative moves seen on the currency market.
The suspected intervention on April 30 was the first action by Japanese authorities in the foreign exchange market since July 2024 when Japan disbursed a total of 5.53 trillion yen to support its home currency.
