Yen Surge Sparks Official Action Fears in Currency Markets

The Japanese yen experienced a sharp rise in value, surging as much as 1.2% to 158.22 per dollar in New York trading on Wednesday.

This move has left traders on high alert for any evidence that authorities will take further action to support the currency.

Nathan Thooft at Manulife Investment Management said, 'The market got the message that the authorities want a stronger yen.'

The yen began strengthening earlier in the day after a Bank of Japan board member hinted at the possibility of outsize or back-to-back interest-rate hikes.