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Japan Buys Yen, Raises Rate to ¥156.5, Alerts US

5/1/2026

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Summary

Story summary

Japan's finance ministry and central bank bought yen on April 30, raising it to ¥156.5 per dollar.
U.S. officials were alerted under a Group-of-Seven coordination pact.
Finance Minister Satsuki Katayama and diplomat Atsushi Mimura warned steps may be needed after the yen fell past ¥160, reflecting the U.S.–Japan rate gap.
Traders said the move trimmed the biggest short-yen position in almost two years and could spur action during Golden Week.

History

Historical Context

Since the 1970s Japan’s Ministry of Finance and the Bank of Japan have repeatedly sold dollars to curb yen appreciation that threatened export-driven growth. The 1985 Plaza Accord spurred a rapid rise to ¥128 per dollar, prompting further interventions, while low rates since the 1990s fueled carry-trade-driven depreciation. In 1998 and again in 2024 authorities intervened at ¥156.5 per dollar under G7 coordination.

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Story summary

Japan's finance ministry and central bank bought yen on April 30, raising it to ¥156.5 per dollar.
U.S. officials were alerted under a Group-of-Seven coordination pact.
Finance Minister Satsuki Katayama and diplomat Atsushi Mimura warned steps may be needed after the yen fell past ¥160, reflecting the U.S.–Japan rate gap.
Traders said the move trimmed the biggest short-yen position in almost two years and could spur action during Golden Week.

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