Japan Likely Conducted Another Massive Yen-Buying Intervention on Thursday
By Megumi Fujikawa
TOKYO--Japan likely carried out another massive yen-buying intervention on Thursday, according to calculations based on data from the Bank of Japan and private money brokers.
In a daily projection released Friday, the BOJ said commercial banks' deposits at the central bank will likely drop by 8.2 trillion yen, or about $51.41 billion, on Monday due to fiscal factors. That would compare with a previously expected drop of around Y1.8 trillion estimated by money-market brokers.
Foreign-exchange transactions usually settle in two business days. The gap of roughly Y6.4 trillion between the BOJ's forecast and broker estimates offers a key indication of the size of Thursday's suspected intervention, which Japanese authorities haven't officially confirmed.
The yen strengthened sharply against the dollar overnight past the 158 level, fueling market expectations that Tokyo intervened to prop up the currency. The dollar-yen pair last stood at around 159.95.
Between April 28 and May 27, the government spent a record Y11.7349 trillion on intervention.
Write to Megumi Fujikawa at megumi.fujikawa@wsj.com
(END) Dow Jones Newswires
July 31, 2026 07:01 ET (11:01 GMT)
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