Japan spends over $40 billion in October to prop up yen in forex markets

Japan spent a record 6.3 trillion yen ($42.4 billion) in October to counter the yen’s sharp slide against the dollar, as it tried to limit speculative moves adding to pressure on the currency.

The government has chosen to remain silent over further direct market action in the past month or so, a strategic shift after it announced its first yen-buying intervention in 24 years on September 22, according to Bloomberg.

The 2.8 trillion yen move in September failed to reverse the yen’s falling trend, and the currency dropped to almost 152 against the dollar before its sharp surge on October 21.

The finance ministry disclosed data for the period between September 29 to October 27. Central bank figures and market estimates of money flows with the government had suggested that a suspected intervention on October 21 cost around 5.5 trillion yen ($37.2 billion).

Other moments of high volatility including a sharp move on October 24 have kept traders guessing over how often authorities have been operating in the markets.