Japan Believed to Have Spent 5 T. Yen in Forex Intervention

Tokyo, April 30 (Jiji Press)–Japanese authorities are believed to have conducted yen-buying, dollar-selling foreign exchange market intervention worth some 5 trillion yen Monday, it was learned Tuesday.

The estimate was given by market players based on Bank of Japan data on projected changes in commercial financial institutions’ current account balances at the bank.

On Monday, the dollar slumped below 155 yen just hours after exceeding 160 yen for the first time in about 34 years. This happened in overseas trading because the Tokyo market was closed for a national holiday.

The abrupt moves fueled speculation that the Japanese authorities stepped in to buy yen and sell dollars on multiple occasions. The government has declined to say whether any such intervention was conducted.

Current account balances at the BOJ change in line with the movements of funds deposited by private financial institutions with the central bank. On Tuesday night, the BOJ released projections of changes in the current account balances for Wednesday.

[Copyright The Jiji Press, Ltd.]