Yen Soars on Suspected Intervention Amid Rate Gap Concerns

The yen surged by 3.3% against the dollar in one trading session, reaching 157.98 yen per dollar at its strongest point. This is the largest intraday gain for the currency since December 2023.

Traders suspect that Japanese officials intervened to buy yen and sell dollars, citing the scale of the move as evidence. Geoffrey Yu, a senior strategist at Bank of New York, noted that 'the scale of the move strongly suggests intervention.'

The yen has been under pressure due to rising oil prices, large government budget deficits, and a wide gap between interest rates in the US and Japan.