Yen-buying intervention was conducted from late April to early May 2026, while USD/JPY temporarily rose to around ¥164 as the yen weakened. As this marked the first coordinated intervention in 28 years, the shift in macroeconomic policy and the fiscal stance have been cited as the main causes of yen weakness.
Yen-buying intervention was conducted from late April to early May 2026, and the yen temporarily weakened to around ¥164 against the dollar. The intervention is considered large-scale, with the amount of intervention in 2026 estimated at approximately ¥24 trillion.
Although no major shock has occurred behind the yen's weakness, views have emerged that macroeconomic policy has been an important factor. While the BOJ's inflation statistics indicate elevated levels, real interest rates remain negative, and upward pressure on the exchange rate is expected to continue. It has also been suggested that the Takaichi administration's expansionary fiscal stance contributed to the yen's weakness.
Over the longer term, a policy shift, in addition to coordinated intervention, could help curb yen weakness, making the BOJ's pace of rate hikes and changes in the government's fiscal management key areas of focus. Attention is turning to developments in the government's and the BOJ's policy stance.