TOKYO: Japanese officials may have spent some 5.5 trillion yen ($35.06 billion) supporting the currency on Monday, Bank of Japan data suggested on Tuesday, after it hit fresh 34-year lows

The central bank’s projection for Wednesday’s money market conditions indicated a 7.56 trillion yen net receipt of funds, compared with a 2.05-2.30 billion yen net receipt of funds estimated by money market brokerages, excluding intervention.

Currency trades take two days to settle, so if there was large-scale intervention, it would be expected to show up in money markets on Wednesday.

The data suggests Monday’s intervention was very close in size to the record 5.62 trillion yen spent on Oct. 21, 2022.

The yen slid sharply to 160.245 per dollar on Monday, its lowest level in more than three decades, then suddenly reversed direction and rebounded nearly six yen, spurring speculation that Japanese authorities had intervened to prop up their currency.

Japanese officials have refrained from saying whether they intervened.

The currency pair last changed hands at 156.89. The yen has depreciated more than 10% against the dollar so far this year.

Investors expect Japanese bond yields will remain low for an extended period. In contrast, U.S. rates are still relatively high and provide enough latitude for yen bears.

Reuters