Japan Intervenes to Prop Up Yen Amid Currency Market Turmoil

Japan's finance ministry conducted a massive intervention in the currency market on Thursday to prop up the yen, according to the Nikkei newspaper. The move involved buying yen and selling dollars in New York markets, which led to a significant decline in the dollar's value against the Japanese currency.

The dollar sank to a more than two-month low against the yen, dropping 2.6% to 159.225 on Thursday. Analysts believe that this marks an official intervention by Tokyo to prevent further declines in the yen, which has been trading at four-decade lows.

Markets have been on high alert for any signs of yen-buying by Japanese authorities, who have warned of action to prop up the currency due to its weakness. The cost-of-living impact of rocketing energy import prices has exacerbated the yen's decline.