Yen Jumps Most Since 2022 Amid Speculation of Official Intervention

Japan's yen surged against the US dollar on Thursday by its largest margin since 2022, sparking speculation that Tokyo had intervened in currency markets to prop up the yen. The Japanese finance ministry's foreign exchange division could not be reached for comment, but analysts pointed out that the scale of the move suggested official intervention.

The dollar fell as much as 3% against the yen to 158.34, down from a record high near 164 yen hit earlier in the week. Banks reported unusually high volumes of currency trading, and several analysts suggested that Tokyo may have bought yen to offset speculation-driven selling.

Markets had been on alert for yen-buying by Japanese authorities, who have warned of action for months as weak currency exacerbates rising energy import costs. Analysts pointed out that a backdrop of month-end positioning, soft US economic data, and the broadly soft dollar may have provided Japan with an opportunity to support its currency.