Yen Jumps 0.9%, Traders Suspect Government Intervention

The yen has been in the spotlight after a sudden jump in value on Wednesday. Traders suspect that the move may have been driven by government authorities, which could be an attempt to keep pressure on the dollar ahead of a crucial US jobs report.

The yen held at 158.88 per dollar, having jumped 0.9% overnight. This move has left market participants on alert for an official intervention from Tokyo.

The rally was broad-based, with the euro falling roughly 1% against the yen on Wednesday, and sterling dropping 1.15%. The strength in the yen also left the US dollar on the back foot, with the euro up marginally to $1.1589.

Currency strategist Carol Kong from Commonwealth Bank of Australia said that 'the yen rally was about 0.9% and it's not a big move... But some market participants have speculated that the rally was caused by a rate check.'