Yen Soars After Joint Intervention, Dollar Bruised

The yen surged to an intraday high of 156.01 per US dollar on Monday after authorities intervened in the foreign exchange market, leaving the dollar bruised.

The joint intervention by Tokyo and Washington was confirmed by Japan's finance ministry last week, with data showing that as much as $58.97 billion worth of yen may have been bought on Thursday.

Elias Haddad, global head of markets strategy at BBH, said 'History is clear, joint FX intervention packs a punch, and investors should lean with the official flow, not against it.'

The recent bout of yen-buying has hammered the dollar, with the euro rising to a 1-1/2-month high of $1.1559 early in Asia on Monday.