Yen Surges Against Dollar Amid Speculation of Japanese Intervention

The Japanese yen surged against the US dollar on July 30, sparking speculation that Japan intervened in the currency market to prop up its weak currency.

Markets have been on high alert for yen-buying by Japanese authorities, who have warned of action for months as currency weakness exacerbates the cost-of-living impact of rocketing energy import prices.

The yen has traded near 40-year lows against the dollar, pressured by Japan's relatively low interest rates and higher energy prices hitting the nation's terms of trade.

Dollar/yen fell to as low as 157.8 and was last trading at 158.61, down 2.5 per cent on the day.