Content and data provided by various third parties and Fidelity - Terms of Use
Print.Print
Small font size A Larger text size A Largest text size A

Japan may have spent $35 billion in yen-buying intervention, BOJ data shows

BY Reuters | ECONOMIC | 05:25 AM EDT

By Atsuko Aoyama and Rocky Swift

TOKYO, May 1 (Reuters) - Japan may have spent as much as 5.48 trillion yen ($35 billion) bolstering its embattled currency, central bank data indicated on Friday, following reports that Tokyo intervened on Thursday to arrest a sharp selloff in the yen.

The Bank of Japan's projection for money market conditions on May 7, the next market day after a stretch of domestic holidays, indicated a 9.48 trillion yen net outflow of funds.

Major money market firms had forecast a drawdown of between 4 trillion yen and 4.5 trillion yen.

Yen-buying activity involves the BOJ soaking up yen from markets, so any outsized shortfalls in funds can offer potential clues as to how much was spent on any intervention. Japan intervened to support the yen against the U.S. dollar on Thursday, sources familiar with the matter told Reuters, in its latest attempt to halt a slide exacerbated by a spike in oil prices linked to the Iran war. Prior to that, Japan's most recent intervention happened in July 2024, when it spent about $36.8 billion to bolster the yen after it sank to a 38-year low of 161.96 per dollar.

($1 = 156.5500 yen) (Reporting by Rocky Swift; Editing by Alexander Smith)

More Fixed Income News

All Fixed Income News

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

© 1998 – 2014 FMR LLC.

All rights reserved.
fir_news_article