Japan's Forex Intervention Late Last Week Totals 5 T. Yen

Economy

Tokyo, Oct. 24 (Jiji Press)--Japan's yen-buying, dollar-selling market intervention late last week is believed to have totaled some 5 trillion yen, market sources said Monday.

It was apparently the largest such intervention ever by Japanese authorities, topping the 2,838.2-billion-yen intervention on September 22.

The latest intervention came after the yen fell close to 152 per dollar in overseas trading on Friday, and is believed by some to have boosted the Japanese currency past 145 on electronic broking system.

According to data released by the Bank of Japan on Monday, financial institutions' current account deposits at the BOJ are forecast to decrease by 1.18 trillion yen on Tuesday due to "fiscal policy" factors. There was a 5-trillion-yen gap between the projected decrease and the market consensus estimate for an increase.

The deposits shrink after yen-buying interventions, as the Japanese government buys yen from financial institutions.

[Copyright The Jiji Press, Ltd.]

Jiji Press