Japan Executes Surprise Yen Intervention Amid Dollar Plunge

The Japanese government and the Bank of Japan conducted a surprise intervention in the foreign exchange market on Thursday night, during New York trading hours. This was the first yen-buying, dollar-selling intervention in about three months.

Japanese authorities likely carried out the intervention to prop up the value of the yen, as Finance Minister Satsuki Katayama did not issue a prior warning, unlike before the previous intervention on April 30.

The dollar briefly plunged by about 5 yen to slip below 158 yen, hitting its lowest level since mid-May in New York on Thursday.