Japan's Currency Intervention Efforts
In July 2024, Japan's Ministry of Finance (MOF) reported significant currency interventions to address the volatility of the yen. On July 11, Japan spent 3.168 trillion yen ($20.69 billion) in a dollar-selling effort, followed by an additional 2.367 trillion yen ($15.42 billion) on July 12. These actions were part of a larger 5.53 trillion yen intervention, spanning from June 27 to July 29.
Impact on the Yen Exchange Rate
The currency interventions had an immediate effect on the yen’s exchange rate. Over these two days, the yen appreciated sharply, strengthening from a low of 161.76 yen per dollar to 157.30 yen per dollar. This substantial movement highlighted the scale of Japan’s efforts to curb excessive depreciation of its currency.
Japan's Strategy and Goals
The interventions were part of Japan's ongoing strategy to stabilize the yen amidst global market fluctuations. By selling dollars and purchasing yen, Japan aims to mitigate the negative impacts of yen weakness on its economy and prevent further speculative trading pressures.


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