TOKYO – Japan conducted yen-buying, dollar-selling market intervention in New York markets on July 30, a market source said, pulling the sagging currency from four-decade lows.
The move came ahead of the Bank of Japan’s policy decision on July 31, where the central bank is widely expected to keep interest rates steady at 1 per cent but signal its readiness to continue pushing up borrowing costs.
US Treasury Secretary Scott Bessent said on July 30 that Japan may have intervened to prop up its yen currency, according to a Fox Business Network reporter, who added Bessent said the yen “seems very undervalued to me”.
The Nikkei newspaper reported earlier on July 31 that Japan likely conducted massive yen-buying intervention. It also reported that US authorities conducted so-called rate checks, which are precursors for currency intervention.
The Japanese finance ministry’s foreign exchange division could not be reached immediately for comment. The New York Federal Reserve also declined to comment.
The dollar sank to a more than two-month low against the Japanese yen on July 30 in what analysts said looked like official intervention. After hitting 159.22 per dollar on July 30, the yen stood at 159.63 in Asia on July 31.
Markets have been on alert for yen-buying by Japanese authorities, who have warned of action for months as the currency’s weakness exacerbates the cost-of-living impact of rocketing energy import prices. REUTERS
