Japan Spent Record $96.5 Billion to Support Yen in Recent Month
Japanese authorities spent a record 15.4 trillion yen ($96.5 billion) over the past month intervening in foreign exchange markets, according to Finance Ministry data released on August 28, 2026. The intervention aimed at stabilizing the yen amid concerns that its weakness—reaching four-decade lows—is hurting profits for major exporters and increasing import costs, particularly energy imports from the Middle East. The Bank of Japan (BOJ) has maintained low interest rates compared to other markets like the U.S., which continues to attract investors using cheap yen for global trades. However, policymakers have signaled openness to faster tightening, with a 65% chance of a rate hike at their next meeting in September. The intervention included rare joint action between Japan and the United States on July 30-31.
Topics: central bank intervention foreign exchange yen weakness