Authorities intervened during thin holiday markets, adding to $35 billion spent on April 30 to support the yen.
Japan intervened in currency markets during early May holidays, spending up to JPY5 trillion or $32 billion between May 1 and May 6. The move followed a $35 billion intervention on April 30, timed to exploit thin liquidity during the holiday period.
Prior interventions had targeted yen weakness amid diverging monetary policies between the Bank of Japan and the U.S. Federal Reserve. The yen has faced sustained pressure due to Japan’s ultra-loose monetary stance compared to rising U.S. interest rates.
USD/JPY showed minimal reaction, holding steady at around 156.90 following the disclosure. Market participants remain focused on potential further policy shifts from the BoJ.