Saturday, May 2, 2026 4:09 pm –
Jerusalem time
Economic reports and official data issued by the Bank of Japan revealed that Tokyo carried out a large-scale intervention in the foreign exchange market, pumping no less than $32 billion to support the value of the yen. This step, which is the first of its kind since 2024, comes in an attempt to curb the rapid deterioration of the national currency against the US dollar, according to what was reported by specialized press sources.
Current account data showed that the Japanese financial authorities took action after the yen reached critical levels, as the exchange rate recorded a decline that exceeded 160 yen per dollar, which is the lowest value recorded by the Japanese currency in about 24 years. Officials in Tokyo had previously hinted at the possibility of direct intervention in the markets to confront the sharp fluctuations that harmed economic stability.
The yen fell to just under 160 yen to the dollar, its lowest level since the summer of 2002.
Economic sources attribute this collapse in the value of the yen to a number of geopolitical and economic factors, most notably the continuation of the war in Ukraine and its impact on global energy prices, in addition to the large discrepancy in monetary policies between Tokyo and Washington, where the widening interest rate gap led to continued selling pressure on the Japanese currency in favor of the dollar.
