Japanese Authorities May Intervene in Forex Market with ¥8.45 Trillion
The Japanese authorities are expected to sell $58.97 billion (approximately ¥8.45 trillion) during Thursday's New York trading session to intervene in the foreign exchange market and support the yen. This estimate is based on data from the Bank of Japan's accounts and predictions from currency brokers, with the portion exceeding normal funding arrangements considered as the scale of intervention. The yen appreciated by 3.3% during Thursday's New York session, marking the largest intraday gain since December 2023. Market participants noted that the Japanese authorities had previously intervened in the forex market, and U.S. authorities also conducted a rate inquiry around 2:30 a.m. Tokyo time. Such a large-scale intervention indicates that the Japanese monetary authorities have significantly lowered their tolerance for the dollar-yen exchange rate reaching or approaching the 160 or 165 mark. The $58.97 billion is an estimated figure, and the official data may vary slightly; the Japanese Ministry of Finance is expected to release July intervention data at the end of August to confirm the actual scale.
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