The Bank of Japan's interest rate decision is looming tomorrow, with the yen surging by 3%. The Japanese government may intervene in the foreign exchange market once again.

BlockBeats News, July 30th, according to Bitget market data, the USD/JPY short-term plunged and continued to fall, with a cumulative drop of over 400 points. The intraday decline reached 3%, currently trading at 158.5, marking the largest drop since earlier this year when the Japanese government intervened in the market. The market speculates that the Japanese authorities may intervene again to support the yen, and tomorrow the Bank of Japan will announce its interest rate decision.

Prior to this, the yen exchange rate had been weakening all the way, once falling to its lowest level in nearly 40 years. Despite the Japanese government's record-breaking intervention in the foreign exchange market totaling 11.73 trillion yen (about $732 billion) from April 28th to May 27th to prevent the USD/JPY from breaking below the 160 level, the yen has continued to remain under pressure. According to the foreign exchange reserve data published by the Japanese Ministry of Finance, the funds needed for the recent government intervention in the foreign exchange market likely come from selling its holdings of foreign securities assets, including U.S. Treasury bonds.