The effect of correcting the yen's weakness faded even after the coordinated Japan-US intervention at the end of July, with the dollar returning to the ¥160 range as of the morning of 31 July. The Ministry of Finance's total intervention amounted to ¥15.3993 trillion, among the largest amounts ever, and attention is focused on developments ahead.
Japan and the United States conducted coordinated intervention at the end of July to correct the yen's weakness, but the dollar-yen rate again reached the ¥160 range as of the morning of 31 July, and signs emerged that the intervention's effect was fading.
The dollar was bought in response to remarks from the Federal Reserve, at times causing the yen to weaken further. Fed Chair Warsh indicated the possibility of further rate hikes until the inflation rate moves toward its target.
According to the Ministry of Finance, total intervention over the past month amounted to ¥15.3993 trillion, the largest monthly amount on record.
Experts say the effect of foreign exchange intervention diminishes over time.