Japanese authorities may have spent about 3.66 trillion yen ($23.59 billion on Wednesday in the latest attempt to lift the yen from nearly 34-year lows, Bank of Japan data showed on Thursday.
Japan’s Finance Ministry may have spent about 6 trillion yen on Monday intervening in the market to support the Japanese currency after it fell to 160.245 per dollar for the first time since April 1990, data showed.
On Wednesday, the yen was trading around 157.55 per dollar when it suddenly surged, reaching as high as 153 in the next half hour.
The Ministry of Finance did not want to say whether or not it was behind the yen’s rise, only reiterating its willingness to intervene at any time to contain disorderly movements.
Currency transactions take two business days to settle and Japanese markets will be closed for a public holiday on May 6 and 7.
The central bank’s projection for market conditions on May 8 indicates a net fund inflow of 4.36 trillion yen, compared to a broker estimate of 700 billion yen to 1.1 trillion yen that excludes intervention.
“This is a very large sum in a short period of time,” said Shoki Omori, chief strategist at Mizuho Securities, referring to two apparent speeches this week.
Despite the yen’s sudden and sharp rises, it remains down about 10% against the dollar this year, and was trading at 155.22 this Thursday.
Source: Terra

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