Story perspectives

Japan spends $1.4 trillion buying yen amid oil spike

5/2/2026

Summary

Japan Buys Yen

Japan's Ministry of Finance intervened on May 1 2026, buying yen with about $1.4 trillion of U.S. dollar reserves as oil-price spikes and U.S.–Japan rate gaps weakened the currency.
Policymakers warned that speculative energy moves are amplifying yen volatility, noting Japan imports roughly 95 % of its crude oil from the Middle East.
Officials discussed extending the intervention into oil-futures markets and seeking G7 coordination, though analysts doubt it will curb yen weakness.

Summary

Japan Defends Yen

The yen surged 0.7% on Friday to 155.57 per dollar, its strongest level since late February.
Vice finance minister Atsushi Mimura said Tokyo will act in crude-oil futures markets because speculative oil trades drive yen volatility.
Prime Minister Sanae Takaichi’s tax-cut plan lifted government-bond yields to multi-decade highs.
During the prior Golden Week, Tokyo spent roughly $100 billion on two yen-support operations, highlighting past market-stabilisation scale.

Summary

Japan Spurs Yen

Gold rose to near $4,630 an ounce after the yen surged following Japan’s intervention.
Silver gained 0.4% to $74.06 an ounce.
Citi Research said gold may face short-term selling pressure but could shine as a haven given rising geopolitical uncertainty.
U.S. President Donald Trump reiterated a naval blockade of Iranian ports.
Iran’s supreme leader Mojtaba Khamenei vowed to keep nuclear technology and control the Strait of Hormuz.

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Japan Buys Yen

Japan's Ministry of Finance intervened on May 1 2026, buying yen with about $1.4 trillion of U.S. dollar reserves as oil-price spikes and U.S.–Japan rate gaps weakened the currency.
Policymakers warned that speculative energy moves are amplifying yen volatility, noting Japan imports roughly 95 % of its crude oil from the Middle East.
Officials discussed extending the intervention into oil-futures markets and seeking G7 coordination, though analysts doubt it will curb yen weakness.

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