Yen Surges Amid Speculation of Japanese Intervention

The Japanese yen surged in trading on Thursday, briefly reaching its strongest level in about two-and-a-half months against the US dollar. The currency rallied by about five yen, marking a sharp gain.

This move came as speculation rose that Japanese authorities had intervened in the market. In recent weeks, the dollar had been climbing due to rising US crude oil futures driven by tensions with Iran and expectations of further rate hikes by the Federal Reserve.

In April and May, Japanese authorities and the Bank of Japan intervened in the market, spending over 11 trillion yen to buy the Japanese currency and sell the dollar.