Japan reportedly intervened in the foreign exchange market again last Friday, injecting an estimated $34 billion to stabilize the yen, marking a record scale of intervention.

August 3rd, Japan's Finance Minister Okatsuka confirmed that the Japanese government intervened in the foreign exchange market last Friday. Market analysis shows that the Japanese authorities may have used around ¥5.33 trillion (approximately $34 billion) to buy yen on that day, making the scale of this round of intervention the highest in a single month in history.

Bloomberg estimated based on Bank of Japan account data and market institution predictions that Japan's intervention amount last Friday was around ¥5.33 trillion. If the data is confirmed, coupled with previous actions, Japan's recent cumulative intervention scale will exceed the previous record of ¥11.73 trillion.

Prior to this, it was estimated that the Japanese authorities had injected around ¥8.45 trillion to support the yen last Thursday, possibly becoming the largest single-day intervention in the history of Japan's foreign exchange market.

This action took place after the USD/JPY rate rose to 164, hitting a new high since 1986. Japan tried to combat speculative short positions by buying yen to stabilize the exchange rate.

The U.S. Treasury Department had previously participated in boosting the yen, seen as the closest monetary policy cooperation between Japan and the U.S. in 15 years. U.S. Treasury Secretary Benson stated that the U.S. would not rule out intervening in the market again, with President Trump also expressing support for this.

Market participants expect that the Japanese authorities may take further action in the future. Traders are also monitoring the possibility of a rate hike by the Bank of Japan in September and the quarterly foreign exchange intervention report to be released by the Japanese Ministry of Finance this Friday, which will disclose details of daily interventions from April to June.