Japan Sold About JPY 8 Trillion In FX Intervention: Report

2011-11-02 11:34:59

The Japanese government and the Bank of Japan sold around JPY 8 trillion during the currency intervention on October 31, the Kyodo news agency reported citing estimates based on a central bank data released Tuesday.

The latest intervention, aimed at taming the yen, was the biggest one-day operation on record. The previous one-day record was an estimated JPY 4.5 trillion spent in August.

Separately, Japan's Asahi newspaper reported that the Japanese intervention reached JPY 10 trillion, more than double that in August.

Bank of Japan board member Sayuri Shirai said Wednesday that if the prices of equity and other risk assets fall globally, yen may be pushed up further against the dollar with investors seeking safer assets. As a result, household sentiment will deteriorate, hurting the economic activity, she said.

Last week, the central bank eased monetary policy, by pumping an extra JPY 5 trillion in to the system, to stem the yen rise.