Yen Surges Amid Suspected Official Intervention

The Japanese yen surged on Thursday, with analysts suspecting official intervention by Tokyo to prop up the currency, which has slumped to four-decade lows against the dollar.

The dollar fell by as much as 3% to 158.34, down from 40-year highs hit earlier in the week, and was set for its biggest one-day fall since late 2022.

Currency analysts said a backdrop of month-end positioning, weak U.S. economic data, and a broadly soft U.S. dollar may have provided Japanese authorities with a good opportunity to support their embattled currency.

The Japanese finance ministry's foreign exchange division could not be reached for comment on whether they were involved in the market move.