Japan confirms first currency intervention since 2022 with $62 billion in spending
Japan confirms first currency intervention since 2022 with $62 billion in spending
Japan's Recent Currency Intervention
Intervention Details
Japan's Ministry of Finance confirmed spending 9.7885 trillion yen ($62.25 billion) on currency intervention from April 26 to May 29, marking the first such action since 2022.
Reason for Intervention
The intervention followed a significant drop in the yen, reaching a 34-year low against the U.S. dollar in April, which prompted actions to stabilize the currency.
Impact on Yen
Following the intervention, the yen strengthened more than 2% in the subsequent days, indicating a temporary stabilization in its value.
Historical Context
This move is part of a broader strategy by Japan, which had previously intervened in the currency market three times in 2022 to manage volatility.
What was the exchange rate of the Japanese yen against the U.S. dollar when it hit a 34-year low in April 2023?
The Japanese yen hit a 34-year low against the U.S. dollar in April 2023, reaching an exchange rate of 160.03 yen per dollar.
How much did Japan spend on currency intervention between April 26 and May 29, 2023?
Japan spent 9.7885 trillion yen ($62.25 billion) on currency intervention between April 26 and May 29, 2023. This information was confirmed by the country's Ministry of Finance and marked the first currency intervention by Japan since 2022. The intervention came after the Japanese yen plunged to a 34-year-low in April.