Yen Surges After Joint Intervention, Weighing Heavily on Dollar

The yen made a sharp jump in value following joint intervention by Tokyo and Washington in the foreign exchange market to support Japan's historically weak currency. According to Bank of Japan data, Japan may have bought as much as $58.97 billion worth of yen on Thursday.

Elias Haddad, global head of markets strategy at BBH, noted that 'history is clear, joint FX intervention packs a punch, and investors should lean with the official flow, not against it.'

The yen's rapid appreciation weighed heavily on the US dollar, causing it to drop. The euro rose to a 1-1/2-month high of $1.1559 early in Asia on Monday, while sterling hovered near a two-week top at $1.3484.