Japan Reports No Currency Interventions Since August

The Ministry of Finance of Japan reported that the government conducted no foreign-exchange market interventions between August 27 and September 28. This pause follows a record $98.7 billion operation in the previous month, which was coordinated with the U.S. Treasury to defend the yen after the currency hit 40-year lows near 164 to the dollar in late July.

The yen has since regained strength, trading at 156.93 against the dollar at the time of the report. Market stability has been supported by verbal warnings from officials, comments from U.S. Treasury Secretary Scott Bessent, and expectations that the Bank of Japan will raise interest rates again by year-end to combat inflation.

Finance Minister Satsuki Katayama stated that the government continues to work with the United States to ensure market stability. Katayama noted that the government views the yen's undervaluation as problematic.