TOKYO (Reuters) – Japanese authorities held an emergency meeting this week to discuss a weak yen and said they were ready to intervene in the market to stem what they called erratic and speculative moves in the currency.
The yen rose on the news, breaking from a 34-year low of 151.97 per US dollar after top currency diplomat Masato Kanda said he “would not rule out any steps in response to erratic movements in the exchange rate.”
Japan last intervened in October 2022, when the yen fell to a low of around 152 per dollar. An estimated 9.2 trillion yen ($60.78 billion) was spent defending the currency.
Here is a chart of the Bank of Japan’s (BOJ) actions in the foreign exchange markets.
March 27, 2024 – The Bank of Japan, Ministry of Finance and Japan Financial Services Agency meet after the yen fell to a 34-year low against the dollar and say they are prepared to intervene.
October 21-24, 2022 – On October 21, the dollar fell by more than 7 yen at one point, which sources blamed on authorities buying up yen. Japanese Finance Minister Shunichi Suzuki declined to confirm whether the government had intervened in the foreign exchange market.
September 7, 2022 – Chief government spokesman Hirokazu Matsuno raises concerns about “rapid, one-sided” movements seen in the foreign exchange market after the yen fell above 143 to the dollar.
June 10, 2022 – Japan’s government and central bank issued a rare joint statement saying they were concerned about the yen’s recent sharp fall after it fell above 134 to the dollar.
August and October 2011 – Japan intervenes to curb economic growth that officials fear could derail the economic recovery from the economic downturn caused by the massive March 11, 2011 earthquake and tsunami.
March 18, 2011 – The Group of Seven (G7) countries jointly intervened to stem the yen’s rise as the currency surged to a record high following an earthquake.
September 15, 2010 – Japan intervenes in the foreign exchange market for the first time in six years, selling the yen to stem the currency’s rise after the dollar hit a 15-year low at 82.87 yen.
March 2004 – A 15-month campaign to curb the yen’s rise comes to an end after Japan spent 35 trillion yen, or more than $300 billion, on intervention.
May-June 2002 – The Bank of Japan intervenes to sell the yen, often with support from the US Federal Reserve and the European Central Bank (ECB). The yen continues to rise.
September 2001 – The Bank of Japan intervenes in the process of selling the yen after the September 11 terrorist attacks in the United States. The ECB and the New York Fed act on behalf of the Bank of Japan.
From January 1999 to April 2000 – The Bank of Japan sold the yen at least 18 times, including once through the Fed and once through the ECB, on fears that the currency’s strength would stifle the economic recovery. The yen continues to strengthen.
1997–1998 – The Asian financial crisis caused the yen to weaken, reaching almost 148 to the dollar in August 1998, even after the US authorities joined the Bank of Japan in buying the yen.
April 1994 – August 1995 – The dollar falls to a record low against the German mark and a post-war low against the yen. The United States has intervened repeatedly, often with Japanese and European central banks, to prop up the dollar.
1993 – The Bank of Japan sells the yen for most of the year to contain its strength.
1991–1992 – The Bank of Japan intervenes to support the yen by selling US dollars.
1988 – On January 4, the dollar falls to 120.45 yen, which at that time was the minimum since World War II, at auction in Tokyo. The Bank of Japan steps in to buy dollars and sell yen.
1987 – In February, the six G7 countries sign the Louvre Agreement, which aims to stabilize currencies and stem the broad decline of the dollar.
1985 – The Group of Five Industrialized Nations, predecessor to the G7, signs the Plaza Accord in which they agree that the dollar is overvalued and that they will take steps to weaken it.
1973 – Japanese monetary authorities decide to allow the yen to float freely against the US dollar.
($1 = 151.3600 yen)