Japan spends record $74 bn on yen intervention as currency stays weak

The Japanese government intervened in the foreign‑exchange market with an unprecedented 11.7 trillion yen (about $73.5‑$74 bn) outlay from late April to May 2026, aiming to support the yen after it fell to its weakest level since July 2024. The spending produced a brief bounce, but the yen quickly slipped back toward the psychologically important 160 yen per dollar level.

Finance Minister Satsuki Katayama and Prime Minister Sanae Takaichi have signaled readiness for “bold action” to curb speculation, while the Bank of Japan keeps its policy rate at 0.5%, far below U.S. rates. The wide interest‑rate gap, higher oil import costs tied to Middle‑East tensions, and capital outflows via yen‑funded carry trades keep pressure on the currency, raising import prices for households and boosting flows into higher‑yielding assets, including crypto.

Despite the massive intervention, the yen remains weak, underscoring limited options for the government and the BOJ and highlighting ongoing economic strain for Japanese consumers.