Yen Surges Against Dollar Amid Suspected Official Intervention

The Japanese yen has experienced a significant increase in value against the US dollar, with the dollar declining by as much as 3% to 158.34 on Thursday.

This move comes after the currency hit 40-year highs earlier in the week, sparking concerns about official intervention from Japanese authorities.

Analysts believe that this sharp drop may be a result of official action to prop up the yen, with some attributing it to 'official intervention' by the Japanese finance ministry's foreign exchange division.

Roberto Cobo Garcia, head of G10 FX strategy at BBVA, stated that 'there has been a sharp move lower in dollar/yen that strongly suggests official intervention.'