Japanese authorities conducted a second major intervention in foreign exchange markets around 11 July 2024, deploying an estimated 22 billion US dollars. The yen had weakened to about 161.95 per US dollar on 3 July, its weakest since 1986, and was still trading above 161 before the operation was executed. Following the intervention, the currency strengthened back to around 157 per dollar.
The estimate was derived from Bank of Japan money-market data; the Ministry of Finance does not confirm interventions in real time and publishes intervention totals only at the end of each month.
INTEREST RATE DIFFERENTIAL
The yen's weakness came amid a wide interest rate differential between Japan and the United States. While the Bank of Japan kept monetary conditions loose — even after ending negative rates and yield curve control in March 2024 it held its short-term policy rate at 0–0.1% — the US Federal Reserve had kept the federal funds rate in a target range of 5.25% to 5.50%, a 23-year high.
Japanese authorities had previously intervened in late April and early May 2024, spending 9.79 trillion yen after the yen breached 160 per dollar, following earlier interventions in September and October 2022.