Yen Surges on Fresh Intervention Speculation

The Japanese yen surged against the US dollar on Thursday due to fresh speculation of intervention by Japan's central bank. This comes after a similar move in July, which had a short-lived effect.

Fawad Razaqzada at Forex.com said 'The Japanese yen has emerged as the main story in FX markets today, with the currency sharply higher.' He attributed this to suspected Bank of Japan intervention and expectations of a hawkish Bank of Japan hike.

The yen's strength is partly due to its large difference in interest rates compared to the US, which encourages investors to borrow in yen for carry trades.