Japan is suspected to have injected another $34 billion into the foreign exchange market last Friday, marking a record scale for its yen stabilization operation.

Japanese Finance Minister Satsuki Katayama confirmed that the Japanese government intervened in the foreign exchange market last Friday. Market analysis shows that Japanese authorities likely deployed around 5.33 trillion yen (approximately $340 billion) to buy yen that day, making this round of forex intervention the largest single-month scale in Japan’s history. Bloomberg estimated the intervention amount at roughly 5.33 trillion yen last Friday, based on Bank of Japan account data and forecasts from market institutions. If confirmed, this figure—combined with earlier interventions—would push Japan’s recent total intervention volume past the previous record of 11.73 trillion yen. Earlier, Japanese authorities were estimated to have spent around 8.45 trillion yen to prop up the yen last Thursday, an operation that could be the largest single-day forex intervention in Japan’s history. The intervention came after the USD/JPY exchange rate briefly hit 164, its highest level since 1986. Japan’s yen-buying move aimed to curb speculative short positions and stabilize the currency’s trajectory. The U.S. Treasury Department also joined the yen-support efforts, marking the closest monetary policy coordination between Japan and the U.S. in 15 years. U.S. Treasury Secretary Scott Bessent stated that the U.S. will not rule out further market intervention, and President Donald Trump has backed the move. Market participants expect Japanese authorities may take additional action going forward. Traders are also monitoring the Bank of Japan’s potential for a September interest rate hike, as well as the quarterly forex intervention report to be released by Japan’s Ministry of Finance this Friday, which will disclose daily intervention details for the April-June period.