Yen Surges Against Euro on Speculation of US Currency Intervention

The yen saw significant gains against both the euro and dollar in London's foreign exchange market on July 31, driven by speculation of US monetary authorities conducting a 'rate check' as a preliminary step to actual currency intervention.

The yen-euro cross rate experienced volatile swings, briefly rising from 184 yen to 182 yen per euro, a roughly 2-yen appreciation in a matter of moments. This triggered active yen buybacks in the London market.

However, by 4:00 p.m. UK time, the yen had settled at 183.20-30 yen per euro and 159.20-30 yen per dollar, both roughly unchanged from the same time the previous day.