Japan's Yen Surges Amid Speculation of Intervention Ahead of BOJ Meeting

The Japanese Yen surged by as much as 3.3% to a low of around 158 during the New York trading session, only to rebound above 160 by the time of writing in Asia morning hours.

This sudden movement has sparked speculation about potential intervention by Japan ahead of the Bank of Japan policy meeting later today, and comes after the weaker Dollar environment following the FOMC meeting.

While authorities have not officially confirmed any intervention, various news outlets including Nikkei and Bloomberg reported that Japan intervened in the FX market, with both also stating that the US conducted a rate check on the currency pair.

US Treasury Secretary Scott Bessent said in an interview that 'the Japanese Yen is very undervalued', while Japan's FX chief Atushi Mimura mentioned concerns around recent weak Japanese Yen but declined to comment on intervention.