Yen Surges as Weak US Jobs Data Sparks Intervention Fears

The Japanese yen surged against the US dollar on Friday after a weak US employment report. The dollar fell by as much as 1.1% to 156.68 JPY= and was last trading at 157.16, well away from its 40-year high of 163.99 hit in July.

Traders were wary of the risk of intervention after Japan and the US jointly stepped into the foreign exchange markets just a few days ago to support the yen. The Japanese finance minister said that Tokyo and Washington had been 'closely communicating' and would not hesitate to intervene again if necessary.

Lee Hardman, senior currency analyst at MUFG, attributed the dollar's fall to the weakness in the jobs data, saying it was a big downside surprise that has put a dampener on expectations for the Federal Reserve.