Japan's Currency Intervention Likely Topped $20 Bil.


Japan's currency intervention likely topped $20 bil.

A private-sector estimate puts Japan's recent intervention in the currency market at more than 3 trillion yen, or over 20 billion dollars.

The government and the Bank of Japan stepped into the market last Thursday to buy the yen and sell the dollar in a bid to stop the rapid fall of the Japanese currency.

BOJ data released on Monday on the daily flow of funds indicate about 3.6 trillion yen, or nearly 25 billion dollars, will be transferred on Tuesday from financial institutions through the central bank to the government.

Private-sector financial intermediary firms estimate most of that amount was used in the market intervention.

After the move, the yen rose sharply to the lower 140 level against the dollar.

But the yen has weakened since then, as the interest-rate gap between Japan and the United States continues to widen.

Analysts say it's unclear how long the effects of the market intervention will last.