Yen Surges Against Dollar Amid Weak US Jobs Data

The yen surged against the US dollar on Friday, August 7, after a weak US employment report. The dollar fell by as much as 1.1% to 156.68 and was last trading at 157.16.

This development comes just a few days after Japan and the US conducted coordinated yen-buying intervention to halt the yen's slide. Japanese Finance Minister said Washington and Tokyo had been 'closely communicating' and would not hesitate to intervene if necessary.

Analysts attribute the dollar's fall to the sharp drop in two-year Treasury yields, which is seen as a sign of economic weakness. Lee Hardman, senior currency analyst at MUFG, noted that the 'scale of the undershoot on payrolls means it makes sense for the dollar to be falling.'