By Megumi Fujikawa
TOKYO--Japan likely carried out yen-buying intervention on Friday, 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 that commercial banks' deposits at the central bank would likely drop by 2.74 trillion yen ($17.34 billion) on Wednesday due to fiscal factors. That compared with the decline of Y600 billion expected by money-market brokers in predictions issued earlier this month.
Foreign-exchange transactions usually settle in two business days. Monday was a national holiday in Japan.
The gap of about Y2 trillion between the BOJ's forecast and the estimates by money brokers gives a hint about the size of possible currency intervention on Friday. The Ministry of Finance hasn't confirmed whether it has intervened.
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 issuance and maturity of government bonds but don't account for currency intervention.
The central bank's data released last week indicated the possibility that the Japanese government might have spent more than Y3 trillion to prop up the yen on Thursday.
The yen appreciated sharply against the dollar last week, leading to speculation about possible intervention.
The dollar stood at around 158.45 yen on Tuesday evening in Tokyo.
Write to Megumi Fujikawa at megumi.fujikawa@wsj.com
(END) Dow Jones Newswires
07-16-24 0534ET
