Yen Surges Against Dollar Amid Speculation of Japanese Intervention

The yen surged against the dollar on Thursday, sparking speculation of intervention by Japanese authorities. The dollar/yen exchange rate fell to a low of 157.8 and was last trading at 158.61, down 2.5% on the day.

Japan's currency has been under pressure due to its relatively low interest rates and high energy import prices, which have exacerbated the cost-of-living impact. The yen has traded near 40-year lows against the dollar, with many market participants expecting intervention to prop up the currency.

'It is hard to imagine anything other than currency intervention causing a drop of as much as 5 yen in such a short period of time,' said Daisaku Ueno, chief FX strategist at Mitsubishi UFJ Morgan Stanley Securities. 'They may have put unannounced intervention into practice.'