Japan’s recent $88 billion yen-buying effort failed to sustain gains, with USD/JPY rebounding to 158.93 after initial success.
USD/JPY rose to 158.93 on Monday, erasing nearly a quarter of the gains from Japan’s $88 billion yen intervention late last month. The pair had dropped from near 164 to 157.3 after coordinated purchases by Tokyo and Washington, but the effect proved short-lived.
Japan’s Ministry of Finance spent ¥8.45 trillion ($53 billion) on July 30 and another $34 billion the following day, marking one of the largest single-day yen interventions on record. The U.S. contributed an additional $5 billion to $10 billion, its first joint effort since 1998. Despite the scale, the yen remains August’s weakest major currency.
Previous interventions in 2022 and 2024 also saw rapid reversals, with effects fading within weeks. The 1998 coordinated effort, which cost $833 million, offers a stark contrast to the rising price of recent attempts. Bond markets may now face pressure, as 10-year Japanese yields hover near multi-year highs.