Currency traders are counting down to Friday for official data from Japan’s Ministry of Finance (MOF) that will show how aggressively authorities intervened to support the yen over the past month.
Initial analysis of Bank of Japan accounts indicates that about as much as ¥10 trillion ($63 billion) was spent to bolster the yen from April 30 through the end of the Golden Week holidays on May 6. While officials have declined to comment directly on whether they intervened, a person familiar with the matter said it took place on April 30 and price moves through May 6 bear the hallmarks of government purchases.
“The MOF data is crucial,” said Masahiko Loo, senior fixed income strategist at State Street Investment Management. “A print meaningfully above ¥10 trillion underscores policy commitment.” Loo said that if the exchange rate does not hold even after spending that amount, it could raise questions about the intervention’s effectiveness.
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