Yen Surges Against Dollar Amid Speculation of Intervention

The yen rose sharply against the dollar on Thursday, July 30, in what some traders believe may be a sign of Japanese intervention to prop up its weak currency.

The dollar/yen pair was trading at 158.61, down almost 3% on the day, and has been pressured by Japan's relatively low interest rates and higher energy prices that hit the nation's terms of trade.

Neil Jones, Managing Director of FX Sales and Trading at TJM in London, said 'The 400 point sell off in the U.S. dollar-yen strongly suggest further official MOF intervention to me.'

Yuji Saito, Executive Advisor at SBI FX Trade in Tokyo, also believes that intervention was likely conducted.