New Japanese 1000 Yen banknote on display inside the Currency Museum of the Bank of Japan’s Institute for Monetary and Economic Studies. The new banknotes will start circulate from July 3, 2024.
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Japanese authorities spent 5.53 trillion yen ($36.8 billion) to shore up the yen in July, official data published Wednesday showed.
Data from Japan’s Ministry of Finance disclosed the figures for the period stretching from June 27 through to July 29.
The amount was roughly in line with expectations and followed repeated warnings from Japanese authorities that they would step in to counter excessively volatile currency moves.
Japan’s latest intervention in the foreign exchange market comes shortly after the yen fell to a 38-year low against the U.S. dollar. In late May, the Japanese government had confirmed the country’s first round of currency intervention since October 2022.
Amid the currency weakness, Japan’s central bank on Wednesday raised its benchmark interest rate to “around 0.25%” from its previous range of 0% to 0.1%. The move was expected to mark the Bank of Japan’s highest interest rates since 2008.
The yen rose sharply after the BOJ’s decision and was last seen trading at around 150 per dollar. It marks a stark contrast from the start of the month, when the Japanese currency fell to 161.96 per dollar for the first time since December 1986.
The yen has been combating sustained pressure since the BOJ ended its monetary policy of negative interest rates in March.