Currencies
Japan to Answer ¥9.4 Trillion Question on Currency Intervention
- Official government data for late April to late May is due
- Traders suspect authorities bought yen to slow its declines
The weak currency is inflating import costs, hurting Japanese households and keeping financial markets on edge.
Photographer: Noriko Hayashi/BloombergThis article is for subscribers only.
Investors will learn Friday if Japan intervened to prop up the yen during the last month, with the beleaguered currency vulnerable to a selloff if authorities were absent or had to spend much more than expected.
A comparison of deposits at the Bank of Japan and broker forecasts indicate that the country spent about ¥9.4 trillion ($60 billion) during two intense bouts of purchasing on April 29 and May 1. Anything above ¥9.1 trillion would set a new monthly record for intervention by Japan.