MNI BRIEF: BOJ Data Suggests JPY3Tn+ Yen-Buy Intervention Weds
Latest data points to scale of latest round of potential yen-buying intervention.
The Bank of Japan’s latest fund data suggest Japanese authorities conducted yen-buying intervention totalling in excess of JPY3 trillion in late New York trade on Wednesday.
The data showed that the forecast of Treasury funds and others published Thursday was minus JPY4.36 trillion, considerably bigger than a range of minus JPY700 billion to minus JPY1 trillion initially predicted by money brokers, pointing to a bigger-than-expected drain of funds from financial markets possibly caused by yen-buying intervention.
Settlements of forex transactions are implemented two business days after the transactions. Japanese financial markets are closed Friday and Monday for public holidays. The forecast of current account balances at the BOJ and market operations for Wednesday, published Tuesday indicated that Japanese authorities may have conducted the yen-buying intervention in excess of JPY5 trillion on Monday.