Japan may spend $34.5 billion on currency intervention to support the yen

According to an analysis of the Bank of Japan's accounts, Japan may use approximately $34.5 billion (about 5.4 trillion yen) on Thursday for its first exchange rate intervention since July 2024 to support the yen. In 2024, Japanese authorities supported the yen four times, averaging around 3.8 trillion yen each time. On Thursday evening, Japanese Finance Minister Mayu Katayama warned that "decisive action" was imminent, followed by a significant appreciation of the yen. A source familiar with the matter revealed that the authorities have entered the market for operations. According to data from the central bank, its current account is expected to decrease by 9.48 trillion yen next Thursday, far exceeding the currency broker's forecast of 4.08 trillion yen. This is Katayama's first intervention since taking office in May, driving the yen to appreciate by over 3%. Katayama also reminds traders to remain vigilant during the Golden Week period.