The Ministry of Finance announced that foreign-exchange intervention over the latest month amounted to zero yen. The yen moved stronger, but no additional intervention by the Bank of Japan was confirmed. Expectations of a BOJ rate hike and possible changes to GPIF's asset management were cited as background factors.
The Ministry of Finance announced that intervention in the foreign-exchange market over the latest month amounted to zero. Although the yen strengthened at times in early September, the government and the Bank of Japan did not intervene in the market.
The yen reached ¥160.39 against the dollar before rising to ¥152.89 on the 8th of the same month, its highest level since February. Almost all of the yen's gains from the coordinated Japan-US intervention at the end of July had been reversed by early September. Finance Minister Katayama (片山) outlined the stance taken at the time, while Vice Minister of Finance Mimura (三村) said the authorities would maintain a state of readiness.
The background included speculation over the Bank of Japan's monetary policy and pension funds. BOJ Policy Board member Takata Hajime (高田創) suggested the possibility of consecutive rate hikes and larger increases, while reports said US Treasury Secretary Scott Bessent expressed expectations for a BOJ rate hike. Expectations of changes to GPIF's asset allocation were also said to have supported yen buying.
The government and the BOJ have carried out approximately ¥11.7 trillion of yen-buying intervention in April and May and approximately ¥15.4 trillion in the month through 26 August.