Nearly half of Japan’s historic 8.45 trillion Yen intervention to support the currency has been erased in seven trading sessions.
The Dollar-Yen pair climbed to 159.50, erasing half the gains from Japan’s largest-ever currency intervention. The level sits midway between the pre-intervention peak near 164.00 and the post-intervention low above 155.00, marking a 4.5 Yen reversal since the operation began earlier this month.
Japan’s Ministry of Finance spent an estimated 8.45 trillion Yen in a single session, followed by a joint 5.3 trillion Yen operation with the U.S. Treasury the next day—the first such coordinated move since 1998. The combined effort pushed the pair down nearly nine Yen in two sessions, but officials have not announced further action as the market retraced without resistance.
No fresh intervention has been required, as traders unwound positions independently. Official data on the total cost will not be released until late this month, when the Ministry of Finance publishes its monthly figures.