Japan’s national flag flutters in the wind on the Bank of Japan (BOJ) head office building, Tokyo, Japan, May 1, 2025. | AFP file photo
The Bank of Japan spent around 11.7 trillion yen, equivalent to $73 billion, in the past month to prop up the yen, official government data showed on Friday.
The central bank intervenes in the market under the instruction of the finance ministry in an attempt to ease economic damage from sharp fluctuations in exchange rates.
The data released by the finance ministry showed that the market interventions happened between April 28 and May 27, but did not specify exact dates.
The interventions reportedly began on April 30 when the Japanese currency weakened to near 160 yen per dollar, the lowest in almost two years.
Japanese media reported on May 8 that the bank had by then spent 10 trillion yen propping up the currency.
There have since been several spikes in the currency through to early May, touching 155 on May 6, sparking speculation of further moves by authorities.
The Japanese unit was back around 159.2 to the dollar on Friday, prompting questions about the effectiveness of the interventions.
The yen has weakened on the back of the recent rise in oil prices caused by the Middle East war, as well as the gap between US and Japanese interest rates.
The last time Japanese authorities intervened in the market was in July 2024, when the yen neared 162 per dollar, spending some 5.5 trillion yen.
AloJapan.com