Japan spent up to $36.58 billion on foreign exchange intervention to support the yen, which surged to a three-month peak against the dollar on Monday. The coordinated action between Tokyo and Washington followed last week's joint yen-buying efforts, with the yen trading around 157 per dollar during the New York session, according to Reuters and livemint.com.
The yen initially gained as much as 1.4% versus the dollar in Tokyo before paring some of the gains during the US trading hours. Japan's Finance Ministry confirmed the coordinated intervention with the US, emphasizing readiness to take further action if necessary. Howard Du, a strategist at TD Securities, noted that after three days of volatility, the yen showed signs of stability on Monday, per livemint.com.
This intervention marks a continuation of efforts by Japan and the US to stabilize the yen amid recent volatility. The dollar index was set to end a four-session losing streak as the yen strengthened. Such coordinated currency market actions are rare and underscore the importance of the yen's stability for global markets. The yen's rise to its strongest level in three months reflects the impact of these interventions, as reported by Reuters.
The yen closed the New York trading day near 157 per dollar, maintaining its position at the three-month high. Japan's Finance Ministry reiterated its commitment to intervene as needed, signaling ongoing vigilance in currency markets, according to livemint.com.