Japan and the US spent a combined $95.55 billion to support the Yen amid excessive volatility and disorderly currency moves.
The Japanese Yen strengthened against the US Dollar after coordinated intervention by Japanese and US authorities, pushing USD/JPY down 0.35% to around 156.80. The pair hit an intraday low of 155.23, its weakest since May 6, following joint action to curb volatility.
Japan’s Ministry of Finance confirmed the intervention, with data suggesting Tokyo spent $58.97 billion in its initial move and an additional $36.58 billion during the joint operation with the US. Despite the intervention, fundamentals remain unchanged, with Japan’s low interest rates and loose financial conditions continuing to weigh on the Yen.
The US Dollar Index rebounded slightly to 99.83, limiting further Yen gains. Officials warned they would act again if needed, though the intervention’s long-term impact remains uncertain.