Japan's Record ¥8.45T Intervention Reclaims 160 for Dollar-Yen

The yen surged against the dollar in what appears to be Japan's largest single-day currency intervention. On Thursday, the USD/JPY pair fell as much as 3.3% during the New York session, dropping from above 163 to 157.95.

However, it quickly rebounded and by Friday morning had recovered to 160.18, eventually settling at 160.80 by afternoon.

The Bank of Japan's intervention is estimated to have cost around ¥8.45 trillion ($52.8 billion) and moved the pair six yen for less than a day.

This move has significant implications for the currency market, as it suggests that Japanese authorities are actively working to stabilize the yen.

The U.S. Treasury Secretary Scott Bessent endorsed the intervention in an interview with Fox Business, stating that the yen appeared undervalued.