Japan intervened in the currency market by spending 5.53 trillion yen ($37 billion) over the past month, the Finance Ministry said Wednesday, marking its first official acknowledgment of recent efforts to shore up the currency, which hit a nearly 38-year low against the U.S. dollar during this period.
The data, covering the period from June 27 to July 29, confirmed market views that the yen's surge, at least on one occasion, was caused by operations conducted by Japanese authorities. No daily breakdowns were released.
Until now, Japanese officials have been reticent, seemingly to keep market traders on edge and reluctant to sell the yen aggressively.
The amount was smaller than the 9.79 trillion yen spent between April and May, a monthly record, but was broadly in line with over 5 trillion yen estimated by market sources.
Authorities were suspected of yen-buying when the dollar tumbled over 4 yen from 161 yen in New York on July 11. It then dropped by over 1 yen in a short period into the lower 157 yen zone the following day.
While analysts say the effects of market interventions should be short-lived, the yen has strengthened from the 161 zone following what was then suspected to be yen-buying by Japanese authorities.
Comments by U.S. presidential candidate Donald Trump criticizing a strong dollar, along with market expectations of an interest rate hike by the Bank of Japan ahead of its policy meeting on Wednesday, also boosted yen-buying.
Japan has stressed that foreign exchange rates should be determined by market forces but move stably based on economic fundamentals. It has vowed to rectify excessive fluctuations that would hurt the economy.
The yen has come under intense selling pressure as market players took advantage of the wide interest rate gap between Japan and the United States.
The rapid fall, partly driven by speculators, raised concerns about its impact on the economy, as it increases import costs for resource-scarce Japan and accelerates inflation.
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