Japan Injects 5 Trillion Yen to Halt Yen's Decline
According to Japan's media outlet TBS News, reporting on May 1: The Japanese government and the Bank of Japan conducted foreign exchange intervention yesterday, with the projected amount reaching 5 trillion yen.
The yen has continued to depreciate in the foreign exchange market, falling to a range of 1 USD = 160 JPY. According to sources, the Japanese government and the Bank of Japan decided to intervene in currency rates for the first time in 1 year and 9 months to prevent further depreciation of the yen.
Following this, the yen appreciated by more than 5 yen within 4 hours.
On April 30, the yen was continuously sold off due to concerns over high oil prices and expectations of U.S. interest rate cuts, which raised fears of an expanding trade deficit, causing the yen to temporarily weaken to 1 USD = 160.7 JPY.
According to government officials, the government and the Bank of Japan intervened in the exchange rate late on the evening of the 30th. The yen rapidly appreciated by 5 yen, while the dollar weakened, briefly reaching 1 USD = 155 JPY. After the morning of the 1st, the yen depreciated again by about 2 yen, and the dollar strengthened.
Based on previously released data from the Bank of Japan, the forecast for the current account balance had deviated from market expectations by over 5 trillion yen, meaning that the Japanese government and the Bank of Japan may have already injected up to 5 trillion yen in intervention on this day.
Original article: toutiao.com/article/1863987751377930/
Disclaimer: This article represents the personal views of the author