Japanese Yen Slumps Again as Markets Await Central Bank Intervention

Jakarta, VIVA – The Japanese yen has weakened again, nearing the psychological level of 160 per US dollar. This comes as market participants await official government data on the amount of intervention funds deployed to support the currency. On Friday morning in Tokyo trading, the yen traded around 159.25 per US dollar after briefly strengthening following the Japanese government’s intervention in late April to early May 2026. However, most of the recent gains have now eroded. The yen’s weakening has reignited market concerns that government intervention efforts are insufficient to reverse the currency’s depreciation trend. According to an analysis of the Bank of Japan’s (BOJ) financial reports, the Japanese government is estimated to have spent up to ¥10 trillion, or approximately US$63 billion (Rp1.121 trillion), to support the yen, as cited from TradingView on Friday, 29 May 2026. This figure represents one of the largest currency interventions in recent years. Sources familiar with the policy confirmed that the intervention took place on 30 April. Market movements during the Golden Week holiday until 6 May also provided strong indications of Japanese government yen purchases. Japan’s Finance Ministry is set to release official intervention data for the period 28 April to 27 May on Friday evening local time. Although daily details will not be available until August, the total figure announced is expected to be the main focus for global markets. Market participants believe the intervention amount will determine the yen’s next move. If it significantly exceeds ¥10 trillion, markets may question the intervention’s effectiveness as the yen approaches its weakest level. Conversely, if the intervention amount is smaller, investors may view it as a gradual ‘drip-feed’ strategy to maintain market stability. Japanese Finance Minister Katayama has also been less vocal on yen movements in recent days. Analysts note this pattern resembles the situation before the major April intervention when the US dollar briefly breached 160 yen before sharply falling.