Japan Seen Having Conducted Yen-Buying Intervention Thurs.

Tokyo, May 1 (Jiji Press)–The Japanese government and the Bank of Japan are believed to have conducted a yen-buying, dollar-selling market intervention on Thursday night, it was learned Friday. The amount of the intervention has been estimated at around 5-6 trillion yen. The yen surged sharply in the foreign exchange market following the intervention. The Japanese currency continued to attract buying in Tokyo trading on Friday, with the dollar briefly slipping below 156 yen, down sharply from pre-intervention levels above 160.50 yen. Caution over further intervention led to the sustained trend of yen buying, market sources said. At 5 p.m., the dollar stood at 156.62-63 yen, compared with 160.14-15 yen at the same time on Thursday. The U.S. currency briefly dived below 156 yen in overseas trading as well on Thursday. Market participants had widely believed that the Japanese government and the BOJ intervened in the foreign exchange market to curb the yen’s weakness that day. Japanese Vice Finance Minister for International Affairs Atsushi Mimura told reporters Friday that he does not intend to comment on whether Japanese authorities carried out a market intervention. Mimura said the government’s view that speculative moves are continuing on the currency market “remains unchanged.” He added that Tokyo is “keeping in contact very closely” with the United States, saying, “We are sharing our understanding of the situation and our actions well.” “The long holiday period is still in its early stages,” Mimura said, leaving room for possible further action. Japan is currently in the Golden Week holiday period. In Tokyo trading Thursday, the dollar briefly exceeded 160.50 yen to reach the highest level vis-a-vis the yen since July 2024. But yen-buying, dollar-selling trading intensified after a flurry of remarks by Japanese finance officials suggesting that a market intervention was imminent. Japanese Finance Minister Satsuki Katayama warned that the time for the country to take “decisive action” against the yen’s rapid depreciation was “approaching,” and Mimura also strongly hinted at an intervention, saying, “This is the last evacuation warning.” An official at a Japanese securities firm said, “There is a high possibility that the Japanese government and the BOJ embarked on a currency market intervention.” Meanwhile, another source said that, if authorities have intervened, it was likely effective as it came at a time when many people were on alert. On the Tokyo Stock Exchange on Friday, the Nikkei 225 average briefly climbed more than 400 points to top 59,700, with buying interest centering on strong earnings-backed issues. Even so, amid the yen’s strengthening and persistently high crude oil prices, some stocks came under selling pressure. The Nikkei ended Friday’s trading up 228.20 points, or 0.38 pct, at 59,513.12. END [Copyright The Jiji Press, Ltd.]