Japan Spent Record $98.7 Billion to Prop Up Yen in Past Month

Japan deployed a record $98.7 billion in currency interventions over the past month to defend the yen, according to The Wall Street Journal. The spending helped lift the currency from a 40-year low, though the report notes the impact has been limited.

The intervention campaign gained backing from U.S. Treasury Secretary Scott Bessent, marking a shift in international support for Tokyo's currency efforts. The scale of the intervention—$98.7 billion—represents an unprecedented commitment by Japanese authorities to stabilize the yen after it reached its weakest level against the dollar in four decades.

Despite the record expenditure, the yen's recovery has been modest, suggesting structural pressures on the currency remain. Japanese officials have historically been reluctant to disclose intervention totals in real time, making the $98.7 billion figure a significant data point for traders positioning around currency flows.

The intervention underscores the challenge facing the Bank of Japan as it attempts to manage exchange-rate volatility while maintaining its monetary policy stance.