Yen Surges Sharply Against U.S. Dollar Amid Suspected Intervention. The Japanese currency jumped on Thursday as traders watched for possible moves by authorities to stem its decline.
Yen staged a dramatic recovery against the U.S. dollar, jumping by as much as 2% to 3% to hit a multi-week high.
The sharp rally followed a steep decline that had recently pushed the currency to near 40-year lows past the 163 line.
Market analysts noted that the sudden, aggressive surge bore all the hallmarks of a stealth yen-buying intervention by Japanese authorities to defend the currency.
Japanese officials, including Finance Minister Satsuki Katayama, have faced mounting pressure to stem the currency’s decline, which has severely aggravated domestic import and energy costs.
The dramatic shift came on the heels of a weaker dollar environment, compounded by month-end positioning and reactions to recent U.S. economic signals and monetary policy decisions.
Markets have been on alert for yen-buying by Japanese authorities, who have warned of action for months as currency weakness exacerbates the cost-of-living impact of rocketing energy import prices.
