Dollar Loses Ground Amid Yen Surge and Weak US Labor Data

The US Dollar Index (DXY) lost ground on Wednesday as a sharp rise in the Japanese Yen forced it to reverse its earlier intraday gains.

DXY traded around 99.55, down 0.11% on the day, after reaching 99.86, its highest level since August 14.

The Japanese Yen strengthened across the board, with USD/JPY plunging nearly 1% after flirting with the 160 threshold and last trading around 158.80.

The speed of the move raised speculation that Japanese authorities may have intervened in the foreign exchange market or conducted a rate check.

There is no official confirmation of either action, but weaker-than-expected US labour market data added to the downside pressure on the Greenback.