Yen Surges Against Dollar in Possible Official Intervention

The yen has surged against the dollar on Thursday, causing a sharp drop in the dollar's value. According to analysts, this move is likely due to official intervention by Japanese authorities to support the battered currency.

The dollar fell by as much as 3% to 158.34, down from its recent high earlier this week. This comes just ahead of the Bank of Japan (BOJ) meeting on Friday and follows a divided Federal Reserve's decision to leave interest rates unchanged, which sent the dollar sliding.

The Japanese finance ministry's foreign exchange division could not be reached for comment, but analysts believe that officials have taken advantage of the bearish momentum generated by weaker U.S. data to sell dollars and support the yen.