By Megumi Fujikawa
TOKYO--Japan likely carried out significant yen-buying intervention on Monday, according to a calculation based on data from the Bank of Japan and private money brokers.
In a daily projection released Tuesday, the BOJ said commercial banks' deposits at the central bank would likely drop by 7.56 trillion yen, equivalent to about $48.36 billion, on Wednesday due to fiscal factors. That compared with a drop of around Y2 trillion expected by money-market brokers in predictions issued last week.
Foreign-exchange transactions usually settle in two days. The gap of some Y5.5 trillion between the BOJ's forecast and the estimates by money brokers gives a hint about the size of the reported currency intervention on Monday, which the government hasn't confirmed.
Fiscal factors affecting changes in account balances at the BOJ include government bond issuance, tax payments and currency intervention by the Finance Ministry. The money brokers make estimates based on known factors such as new bond issuance but don't account for currency intervention.
On Monday, the yen surged by as much as five yen against the dollar after quickly weakening to a new three-decade low of around 160 to the dollar.
Write to Megumi Fujikawa at megumi.fujikawa@wsj.com
(END) Dow Jones Newswires
04-30-24 0648ET
