Japan may not intervene in the foreign exchange market this Thursday

Golden Ten Data, May 8 – According to foreign media analysis of Bank of Japan account data, Japanese authorities may not have intervened in the foreign exchange market on Thursday (the first working day of this week) after multiple interventions during the holiday period. The projected figures released by the Bank of Japan on Friday showed little difference from the forecasts of currency brokers, both indicating that financial flows from the previous trading day had limited impact on the central bank's current account, suggesting a low likelihood of extraordinary factors. Revised data reflecting the scale of interventions during the holidays was also broadly consistent with the Bank of Japan’s initial projections, indicating that the Ministry of Finance may have used around $30.6 billion to support the yen during the holiday. The Bank of Japan’s current account data for May 7 (corresponding to the settlement date for the April 30 intervention) saw the financial contribution revised down by 1.5 trillion yen—a substantial adjustment that caused some analysts to question which set of data should be prioritized. Some currency brokers said that initial forecasts might be more indicative than revised or final values, as subsequent data could reflect other financial factors. Based on the revised figures, Japan may have used 8.65 trillion yen for intervention during the holiday period, compared with 9.79 trillion yen during the same period in 2024. However, if using the initial forecast, the cumulative scale of intervention so far this year reaches 10.08 trillion yen.