Yen Soars as Traders Watch for More Intervention

The yen surged on Monday in response to concerns of further intervention from authorities to prop up Japan's historically weak currency. The Japanese currency rose as much as 1% in the Asian morning to peak at 155.20 per dollar, its strongest level in about three months.

Hirofumi Suzuki, SMBC's chief FX strategist, noted that 'the possibility of intervention cannot be ruled out' given the magnitude and timing of Monday's move.

The yen also appreciated against other currencies like the euro and sterling, fuelling speculation that Japanese authorities may be back in the market.

A trader who wished to remain anonymous said there was a significant unwinding of yen shorts on Monday, contributing to the currency's surge.