Yen Surges Against Dollar on Suspected Official Intervention

The Japanese yen surged on Thursday, with analysts suggesting official intervention by Tokyo to prop up its currency. The dollar fell as much as 3% to 158.34 yen, marking its biggest one-day fall since late 2022.

The move comes ahead of the Bank of Japan's (BOJ) meeting on Friday and follows Wednesday's divided Federal Reserve meeting, which left interest rates unchanged and sent the dollar sliding. Analysts said a backdrop of month-end positioning, weak U.S. economic data, and the broadly soft U.S. dollar may have provided Japanese authorities with a good opportunity to support their embattled currency.

Japanese Finance Minister Satsuki Katayama has reiterated the government's readiness to take action in the foreign exchange market. Roberto Cobo Garcia, head of G10 FX strategy at BBVA, said, 'There has been a sharp move lower in dollar/yen that strongly suggests official intervention.'