Japan Spent Around $19-B to Boost Yen vs. Dollar: Mainichi

Japan likely spent approximately 3 trillion yen ($19 billion) overnight to lift the yen from a 37-year low against the US dollar, according to market estimates and data released Friday, Kyodo News reported.

This reticent approach mirrors Japan's tactic when it spent a record 9.79 trillion yen between April and May to slow the yen's rapid depreciation against the dollar.

The suspected intervention sent the dollar tumbling over 4 yen from 161 yen in a short time, shortly after US government data showed slowing inflation, strengthening the case for the Federal Reserve to cut interest rates in September.

Senior Japanese government officials refrained from confirming or denying whether yen-buying intervention had occurred, leaving financial markets uncertain.

This reticent approach mirrors Japan's tactic when it spent a record 9.79 trillion yen between April and May to slow the yen's rapid depreciation against the dollar.

The estimated size of the latest intervention is based on the difference between market estimates of daily changes in the Bank of Japan's current account balance and data released by the central bank.

The Finance Ministry, which requests the BOJ to intervene when deemed necessary, is scheduled to release official data at the end of July. Japanese officials have maintained a stance of countering excessive volatility in the currency market, emphasizing that yen movements should reflect economic fundamentals, as reported by Mainichi Japan.