Yen Jumps 3% as Suspected Intervention Boosts Currency

The Japanese yen made a significant surge on Thursday, rising more than 3% to its highest level in nearly three months. This sharp move came despite a lack of official confirmation from Japanese authorities about intervening in the foreign exchange market.

Investors have been anticipating official yen-buying operations for months, with officials repeatedly warning that they were prepared to act against excessive weakness in the currency. The yen's strength was triggered by suspected intervention, which may be linked to the upcoming Bank of Japan policy meeting scheduled for Friday.

The US dollar fell by as much as 3% against the yen, trading at ¥158.34. This decline comes after the dollar climbed to its highest level in nearly 40 years earlier this week. The move also coincided with the Federal Reserve's decision on Thursday to leave US interest rates unchanged, which weakened the US dollar.

Japan spent more than $70 billion on dollar-selling and yen-buying interventions during April and May, but these efforts have so far failed to provide lasting support for the Japanese currency.