Yen Surges as Traders Anticipate Fresh Intervention

The Japanese yen has strengthened against the US dollar in the wake of last Friday's unexpectedly soft US payrolls report, with traders bracing for potential fresh intervention from authorities.

The currency gained 0.4% on the day to trade at 157.76 per dollar as of 5pm in New York, despite a volatile period following joint interventions by Japanese and US authorities last week.

Lee Ferridge, a strategist at State Street, noted that the market is expecting intervention because 'it's always easier to push on an open door.'

Hedge funds significantly cut bearish bets on the yen after the interventions helped stabilize the currency, according to Commodity Futures Trading Commission (CFTC) data released last Friday for the week through August 4.