Japan Spent Record 5.6 T. Yen in Forex Intervention on Oct. 21

Tokyo, Feb. 7 (Jiji Press)--Japan spent 5,620.2 billion yen in a foreign exchange market intervention on Oct. 21 last year, a daily record high for the country's yen-buying operations, a Finance Ministry report showed Tuesday.

As the Japanese government and the Bank of Japan carried out the large-scale operation in the form of a "stealth" intervention, meaning authorities do not immediately confirm whether they have stepped into the market, the ministry revealed its date and size for the first time in the latest report on interventions conducted between October and December 2022.

During the reporting period, stealth interventions were conducted on two days--Oct. 21 and Oct. 24. Japan spent a total of 6,349.9 billion yen for interventions in the three-month period.

Such secret interventions are believed to create suspicion among market players and make them hesitant to take any unilateral moves in currency trading, according to people familiar with the matter.

On Oct. 21, the dollar climbed to approach the 152-yen line in overseas trading, but then rapidly fell following the intervention, with the U.S. currency believed to have briefly dropped to around 144 yen in some electronic trading.

[Copyright The Jiji Press, Ltd.]