Yen Spike Triggers Intervention Speculation in Tokyo Markets

The yen surged by 1.2% to 158.22 per dollar in New York trading, leaving traders wondering if Tokyo had quietly stepped back into the market it defended with record firepower just weeks ago.

The move occurred between two significant events: a Bank of Japan meeting later this month that markets increasingly expect will deliver a rate hike and a finance ministry that has spent a record $96.4bn in the past month propping up a currency at a four-decade low.

Marito Ueda, president of SBI FX Trade, said 'I don't think the move was an intervention or rate check, but there is a lot of caution around the 160 level.'