The yen-dollar exchange rate in Tokyo on April 30 caught the attention of market players as it was revealed that Japan might have intervened to prevent further depreciation of the yen against the dollar. The suspected intervention, estimated at approximately 5 trillion yen, likely involved yen-buying and dollar-selling actions to counteract the sharp decline in the Japanese currency.
Despite the government not confirming any intervention, experts speculated that the abrupt drop of the yen to the 160-yen level against the dollar was a result of such actions. The timing of the intervention, on a day when Tokyo markets were closed for a national holiday, and the subsequent rebound of the yen to the mid-154-yen level added to the intrigue surrounding the situation. Central Tanshi Co., a private-sector investment company, predicted a substantial decrease in the Bank of Japan's current account balance, hinting at the impact of the intervention on the overall financial landscape. The discrepancies between various estimates, including the BOJ's forecast for the final balance and Central Tanshi Co.'s projections, highlighted the complex nature of the financial interventions and their implications on the yen's stability.