Japan conducted market intervention to stem yen's fall against dollar: sources

TOKYO — Japanese authorities intervened in the currency market on Thursday to stem the yen's rapid fall to the upper 160 range against the U.S. dollar, government sources said, stepping into the market for the first time in one year and 10 months.

Japan's top currency diplomat, Atsushi Mimura, on Friday declined to comment on the foreign exchange market intervention, saying, "I have no intention to comment on such matters." On Thursday, the Japanese currency surged nearly 5 yen to the 155 zone against the dollar within hours.

Ahead of the yen's rapid appreciation, the vice finance minister for international affairs joined Finance Minister Satsuki Katayama in stepping up warnings of "decisive action" to halt the yen's slide, with the Japanese currency weakening to 160.72 in Tokyo trading, its lowest level since July 2024, amid the Middle East crisis.

The dollar has continued to draw buying as a safer asset in times of uncertainty. It also strengthened on the view that the interest rate differential between the United States and Japan will remain wide, following meetings of the U.S. Federal Reserve and the Bank of Japan earlier this week at which they left their policy rates unchanged.

"The time for decisive action, which I have previously mentioned, is finally getting closer," Katayama said Thursday, while Mimura called his warning against speculative movements "the final evacuation advisory."

Japan last intervened in the currency market in July 2024, spending a total of 5.53 trillion yen ($35 billion) to support the currency after it had weakened to an around 38-year low against the dollar near the 162 yen line.

© KYODO