Japan Spent ¥5.4 Trillion as Pound Sterling Live Tracks Yen Jump — Pound Sterling Live
pound sterling live: Japan likely spent ¥5.4 trillion, or about $34.5 billion, to support the yen after Thursday’s intervention pushed the currency up roughly 2%. The move pulled the yen back from near four-decade lows and left traders weighing whether officials will repeat the step during Japan’s long holiday period.
¥5.4 Trillion on Thursday
¥5.4 trillion was deployed in foreign-exchange markets, according to a person familiar with the matter, making Thursday’s action one of Japan’s largest recent currency-support operations. The yen’s sharpest rally in three years followed, a jump that forced dollar-yen trading back toward 156.80 in New York on Friday.
156.80 per dollar was the level the yen held around in New York on Friday, after the intervention reversed part of the pressure that had taken the currency close to its weakest levels in four decades. For companies and households that buy imported fuel or goods priced in dollars, that steadier exchange rate is the immediate development to watch.
Atsushi Mimura Before Golden Week
Atsushi Mimura, the vice finance minister for international affairs, said on Friday: "I will not comment on future developments, but I will point out that we are just at the beginning of a long holiday period" ahead of Japan’s May 4-6 Golden Week break. He also said, "We are in extremely close contact with the US, and I believe we share our assessments of the situation and our actions."
"generally speaking, we are always ready to act regarding crude oil futures transactions," Mimura said, adding another layer to a market already sensitive to rising oil prices. Japan relies heavily on fuel from the Middle East, so a weaker yen can feed higher import costs and faster inflation pressure when crude moves higher.
2024’s $100 Billion Precedent
$100 billion was the amount Japan spent buying yen several times in 2024 after the currency tumbled to around ¥160.17, with extra steps taken when the yen reached 157.99, 161.76 and 159.45. That record gives traders a clear reference point: authorities have shown they will return when the exchange rate stretches again, even after a sharp one-day rebound.
Kathleen Brooks said, "The chances are they will need to continue to act to support the yen in the longer-term." She added, "There is a history of failed intervention attempts to support the yen, which suggests that the gains may not last and the dollar could make a comeback."
May 4-6 is the window now in focus, because Mimura used the eve of Japan’s Golden Week break to warn against reading Thursday’s move as the end of the story. If intervention holds the yen near current levels, the market gets breathing room; if not, the 2024 pattern suggests officials may have to choose between another large buyback and a weaker currency carrying more import pressure.
