Largest Currency Intervention in History by US and Japan to Support the Yen

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by Mish Shedlock, Mish Talk:

There has never been a currency intervention in history that has worked.

Yen Gains on Intervention

Bloomberg reports Yen Gains on Intervention, Reports of Buying By Both US, Japan

  • US and Japanese authorities extended efforts to shore up the yen on Friday, with the currency strengthening more than 1% against both the dollar and the euro.

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  • Japanese authorities bought yen and sold dollars during New York trading on Friday, and the US Treasury Department reportedly sold euros to buy yen on behalf of the US Treasury Department.
  • The moves by Japanese and US officials speak to a coordinated pushback against the depreciation of the yen, which last week touched its weakest level since 1986.
  • The FT said this marked the first joint intervention by the Washington and Tokyo to prop up the Japanese currency in nearly 30 years.

Largest Intervention in History

Japan just conducted its biggest one-day currency INTERVENTION EVER:

Japan deployed an estimated $53 billion, or ¥8.45 trillion, to defend the yen on Thursday, likely the largest single-day currency intervention on record, according to a Bloomberg analysis of Bank of Japan accounts.

The move came as the yen surged as much as +3.3% against the US Dollar, its biggest intraday gain since December 2023.

The intervention followed a rate check from US authorities around 2:30am Tokyo time and coincided with South Korea also stepping into currency markets to support the won, which strengthened to its highest level since mid-October.

By comparison, Japan’s previous record intervention totaled ¥11.73 trillion, or roughly $74 billion, over an entire month during April’s Golden Week holiday.

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