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Japan confirms largest dollar-selling intervention in October

THE NIKKEI via scoutAsia

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October 31, 2022 1 min read
Japan confirms largest dollar-selling intervention in October

Japan bought a total of 6.3499 trillion yen in October, data from the Ministry of Finance showed on Monday, confirming its largest yen purchase and sell-down of U.S. dollars to support its currency. The amount is equivalent to about $43 billion at the current exchange rate of 148.30. The amount exceeded the previous record, 2.83 trillion yen, in September. The Ministry of Finance announced on Sept. 22 that it sold dollars for yen to push the greenback to 140.78 yen from 145.90 yen, in the first dollar-selling intervention in 24 years.

The latest data are for the period between Sept. 29 and Oct. 27, when the MOF entered the market to prop up the yen.
So far this year, the Japanese currency has fallen 22% against the greenback, as the U.S. Federal Reserve has sharply raised interest rates while the Bank of Japan has kept its rates near zero, making the dollar more attractive as an investment and sparking a massive shift from yen.

In October, the dollar-yen rate swung wildly on the back of market intervention. On Oct. 13, the dollar dived after hitting a 32-year high of 146.66 against the yen. The dollar tumbled again on Oct. 18 after rising above 149 yen, a new 32-year low. The greenback again took a skid after rising above 151 on Oct. 21.

The MOF releases monthly intervention records the following month and daily records every quarter. Daily invention records for July-September will be released between Nov. 1 and Nov. 8. October-December records are expected to be released early February.

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The English translations provided through this service are the result of automatic and mechanical translation of contents written in Japanese and created by Nikkei or licensed by a third party, by an automatic translation system provided by a third party after certain processing of the contents by Nikkei. Nikkei disclaims all warranties, express or implied, related to the English translations, including any warranty of accuracy, reliability, validity and fitness for a particular purpose. Users shall use this service with the full understanding that it employs an automatic translation system that automatically and mechanically recognizes and analyzes information and outputs the results.