TOKYO — Money market data released by the Bank of Japan on Tuesday suggested the government intervened in the currency market the day before, when the yen marked a dramatic turnaround against the U.S. dollar after dropping close to 12% from the start of the year.
The BOJ estimates there will be a drain of 7.56 trillion yen ($48.2 billion) in liquidity from the financial system on May 1 due to transactions with the government sector, according to data on the current account balance at the central bank, which is updated daily. Financial transactions are typically settled in two days, so the amount reflects transactions that took place on Monday.
