Tokyo deployed record currency reserves to curb speculative yen moves amid persistent US-Iran tensions and inflation worries.
Japan spent ¥11.7 trillion on foreign exchange interventions over the past month, its largest effort to stabilize the yen. Officials cited extreme concern over speculative currency movements as the primary driver for the action.
The intervention follows a period of heightened volatility tied to geopolitical risks, including stalled US-Iran negotiations. Inflation pressures in Europe also remained elevated, with French and Italian core prices rising in May.
Markets showed mixed reactions: WTI crude fell 1.7% to $87.40, while gold rose 0.8% to $4,530. US 10-year yields dipped 1.4 bps to 4.44%, and European equities edged higher, with the CAC 40 up 0.7% and DAX up 0.1%.