SynopsisJapan carried out its largest-ever single-day currency intervention, deploying nearly $40 billion to support the yen amid sharp depreciation. Detailed data from the Ministry of Finance showed authorities intervened multiple times during the Golden Week holidays, while markets remain alert for further action as the yen weakens again.ETMarkets.comJapan unveils details of its record currency intervention as markets watch for further yen support.Japanese authorities carried out a record single-day intervention in the foreign exchange market in late April, deploying nearly $40 billion to support the yen as the government stepped up efforts to counter the currency's sharp depreciation, Reuters reported.According to data released by Japan's Ministry of Finance (MOF) on Friday, authorities intervened on three separate days between April 30 and May 6, taking advantage of relatively thin market liquidity during the Golden Week holidays. Reuters reported that the operations formed part of a broader record monthly intervention totalling 11.7 trillion yen conducted between April 28 and May 27.The largest single-day operation amounted to 6.28 trillion yen (approximately $39.64 billion) on April 30, making it the biggest one-day currency intervention since comparable records began in 1991. It surpassed the previous record of 5.92 trillion yen set in April 2024.The latest disclosure provides the first detailed daily breakdown of Japan's record intervention campaign, which temporarily helped lift the yen from a near two-year low of 160.725 per dollar to around 155 by May 6, according to Reuters.However, the relief proved short-lived as the yen resumed weakening in the following months, slipping to fresh multi-decade lows below 163 per dollar in July. The renewed decline prompted another round of intervention last week, this time coordinated with the United States.Market participants remain on alert for further intervention as the yen has once again weakened beyond the 158-per-dollar level. Investors are closely watching U.S. employment data due later on Friday, which could shape expectations for the Federal Reserve's interest rate trajectory and influence currency markets.Japan's central bank data suggested authorities may have spent as much as $58.97 billion on July 30 and another $36.58 billion the following day in what could become the largest yen-buying intervention on record. Official figures for those operations are scheduled to be released by the MOF on August 28, Reuters reported.Japanese and U.S. officials have also sought to reassure markets over Tokyo's capacity to sustain large-scale interventions. They have indicated that Japan could make use of a Federal Reserve liquidity facility introduced during the COVID-19 pandemic, which allows major central banks to obtain dollar funding without selling U.S. Treasury holdings outright.The facility is designed to ease funding pressures during periods of market stress and could help Japan finance intervention efforts without significantly reducing its Treasury portfolio.However, Federal Reserve data showed that no repurchase agreements involving foreign official accounts were executed during the week ending August 5, suggesting Japan did not use the facility in its latest intervention, Reuters reported.The recent coordinated intervention with the United States also drew attention because the U.S. Treasury reportedly sold euros to purchase yen. According to a Financial Times report cited by Reuters, the European Central Bank was informed of the U.S. action after the trade had been executed.The report added that some senior ECB officials viewed the use of euros in the intervention as an unusual departure from long-standing conventions governing cooperation among Western monetary authorities.(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of The Economic Times.)Read More News on(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. 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