Yen Surges on Coordinated Intervention with US
The Japanese yen made a surprise jump against the US dollar on Monday, prompting traders to watch for potential further intervention by Japanese authorities.
The yen surged more than 1% against the dollar to an intraday high of 155.20, its strongest level since early May, as it hovered near 40-year lows due to Japan's low interest rates and pressure from higher energy prices on its terms of trade.
Charu Chanana, Chief Investment Strategist at Saxo in Singapore, said the coordinated intervention has increased the cost of betting against the yen and raised the risk of follow-up action.
However, without support from narrower rate differentials or stronger confidence in Japan's fiscal outlook, the yen could come under pressure again once official support fades, Chanana warned.