Japan's record one-day yen purchase in July beats prior high, ministry data shows

what happened

Japan spent 7.98 trillion yen, roughly $50.36 billion, buying its own currency on July 30, according to daily figures from the Ministry of Finance that Reuters cites. The ministry's quarterly release, published on Monday, covers intervention on three separate days between July 30 and August 3. The amount topped the earlier one-day high of 6.28 trillion yen logged on April 30, in a series the ministry says dates back to 1991.

On July 31 Tokyo spent 5.55 trillion yen, the same day the United States sold euros to buy yen in a rare joint move. On August 3 it spent a further 1.87 trillion yen. The breakdown adds detail to the previously reported monthly total of 15.4 trillion yen, or $97.19 billion, between July 30 and August 26.

Before the operations the yen had fallen to its weakest level in 40 years, near 164 per dollar. South Korean officials said the Bank of Korea timed its own won-buying to coincide with Japan's, to strengthen the effect.

why it matters

NLI Research Institute economist Tsuyoshi Ueno, quoted by Reuters, read the size of the operations as a sign of strong official concern. He said the Iran situation, a key driver of the yen's weakness, remains unresolved. For traders, the episode shows how official buying can quickly cap a currency's slide, while the forces that weakened the yen are still in place.

market impact

USD/JPY: Tokyo's heavy yen buying pushes the pair lower and supports the currency

• ▼USD/JPY pressure down — large official yen purchases by Japan push the pair lower

tags

instruments

on polymarket