Japan Bought 3 T. Yen in Forex Intervention

Economy

Tokyo, Sept. 26 (Jiji Press)--Japan is believed to have bought around 3 trillion yen in its first yen-buying, dollar-selling foreign exchange intervention in about 24 years on Thursday, market sources said Monday.

The amount may be a record high for Japan's yen-buying intervention, eclipsing the 2,620.1 billion yen recorded on April 10, 1998, and signaling Japanese authorities' strong determination to stem a rapid decline in the yen that drives prices higher.

In Thursday's intervention, the Bank of Japan purchased yen from commercial financial institutions and sold dollars to them on behalf of the government. Payments will be made on Tuesday.

BOJ data released Monday showed the central bank's current account deposits from commercial financial institutions are forecast to fall by 3.6 trillion yen on Tuesday, with most of the drop apparently linked to the intervention.

The country intervened when the dollar rose above 145.50 yen after BOJ Governor Haruhiko Kuroda told a press conference that the central bank has no plans to raise interest rates anytime soon.

[Copyright The Jiji Press, Ltd.]

Jiji Press