Japan confirms a large purchase of its own currency, the yen, has been made since the end of April, when it had fallen to 160.03 yen per dollar – the lowest rate in 34 years.
Between April 26 and May 29, a currency intervention worth approximately 660 billion kronor has been made, according to the Ministry of Finance in Tokyo, reported by CNBC.
The Japanese economy has struggled with deflation (falling prices) and very weak growth since the bank crisis at the beginning of the 1990s.
The currency has also had a hard time in various rounds, especially after a rate hike in March. But when the yen unexpectedly began to strengthen in May, speculations arose that the government had intervened, which is now confirmed.
The Japanese government last intervened to support the currency in October 2022.
One dollar now costs 157.26 yen.
