The Ministry of Finance released its foreign-exchange intervention results for the past month, showing that intervention from 30 July to 26 August totaled ¥15.3993 trillion, a new monthly record. Japan-US coordinated intervention is believed to have continued.
According to the latest data released by the Ministry of Finance, foreign-exchange intervention from 30 July to 26 August totaled ¥15.3993 trillion, setting a new monthly record. In addition to intervention by the Japanese government and the Bank of Japan acting alone, the possibility of coordinated intervention by Japan and the United States has been raised.
The yen briefly moved rapidly toward ¥164 to the dollar in late July, but subsequently traded around ¥160 to the dollar, with the yen again strengthening at times following the intervention. The daily figures are expected to be released in early November.
By comparison with past records, the previous monthly high was ¥11.7349 trillion from 28 April to 27 May last year, while the annual record was approximately ¥20.4 trillion in yen-selling intervention in 2003. Yen-buying intervention has totaled approximately ¥27.1 trillion year to date, also setting a new annual record.
Estimates based on Bank of Japan data indicate that approximately ¥8.45 trillion of yen-buying intervention was carried out on 30 July and approximately ¥5.33 trillion on 31 July. Foreign-exchange reserves, which provide the funds for intervention, stood at approximately $1.2871 trillion at the end of July. Of that amount, foreign securities accounted for approximately $927.3 billion, while deposits available for immediate deployment totaled approximately $162.3 billion.
Market participants have pointed to the strength of the current pressure on the yen, while expressing the view that concerns over additional measures by the authorities will persist.