Monday’s Currency Intervention by Bank of Japan Speculated. Timeline of Market Interventions from 2010 Onwards


On Monday, a significant strengthening of the Japanese yen was observed, a development believed by market players to signal intervention by Japanese authorities aimed at purchasing yen to stabilize the depreciating currency.

Following a plunge to its lowest level in 34 years at 160.245 per dollar in Asia earlier that day, the yen swiftly rebounded to approximately 155.2 within just an hour of one-sided trading. The precise cause of this movement remained unclear initially, with some traders speculating on Japanese banks engaging in yen purchases.

Japan's most recent intervention in the market occurred in October 2022, when the yen dropped to approximately 152 per dollar. An estimated 9.2 trillion yen ($60.78 billion) was expended to support the currency, with the Bank of Japan (BOJ) taking action in the foreign exchange markets.

On March 27, 2024, following the yen's decline to a 34-year low against the dollar, the Bank of Japan, along with the Ministry of Finance, and the Financial Services Agency of Japan, convened and announced their readiness to intervene.

In October 2022, there were instances where the dollar experienced fluctuations exceeding 7 yen, with sources attributing these movements to authorities purchasing yen. Japanese Finance Minister Shunichi Suzuki refrained from confirming whether governmental intervention occurred in the foreign exchange market.

On September 7, 2022, the top spokesman for Prime Minister Fumio Kishida's government, expressed concerns regarding quick and one-sided shifts in the foreign exchange market, particularly as the yen surpassed 143 against the dollar.

June 10, 2022, witnessed an unusual joint statement issued by the Japanese government and central bank, underscoring their concerns over the abrupt depreciation of the yen after it breached 134 against the dollar.

Japan intervened in the market in both August and October 2011 to mitigate rapid economic expansion that officials feared might jeopardize recovery efforts from the economic downturn triggered by the monumental earthquake and tsunami of March 11, 2011. Additionally, on March 18, 2011, the Group of Seven (G7) nations jointly intervened to prevent the yen from escalating further after the currency reached record highs following the earthquake.

On September 15, 2010, Japan intervened for the first time in six years by selling yen to halt the currency's ascent following the dollar's plunge to a 15-year low of 82.87 yen.

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