Yen Soars to Three-Month High Amid Fears of Further Intervention

The yen jumped on Monday, its strongest level in about three months, as traders watched for further intervention from authorities to shore up Japan's historically weak currency. The Japanese currency rose 1% in the Asian morning to a high of 155.20 per dollar.

This move follows a joint intervention by Tokyo and Washington in the foreign exchange market days ago, with data showing that Japan may have bought as much as $58.97 billion worth of yen on Thursday.

Market participants are highly alert to the risk of further intervention, which could be triggered by a substantial build-up of short yen positions. Hirofumi Suzuki, SMBC's chief FX strategist, said 'the possibility of intervention cannot be ruled out' given the magnitude and timing of Monday's move.