Yen Surges Against Dollar in Surprise Move

The Japanese yen has made a sharp gain against the US dollar after having retraced half of its increases following a joint intervention by Japan and the US at the end of July.

The move caught market analysts off guard, with Chris Scicluna, head of economic research at Daiwa Capital Markets, stating that 'it's a big chunky move' and speculating that it could be a rate check rather than an intervention to shift the trend.

The yen rose as high as 155.21 after the intervention, but had surrendered some gains, reaching 158.72 per dollar on Wednesday before making its sharp increase.