Yen Surges on Joint Intervention Warning
The Japanese yen made a significant surge against the US dollar on Monday morning, reaching as low as 155.20 yen. This sudden movement came after Japan confirmed joint currency market intervention with the US and warned of further action.
Japan's Finance Minister Satsuki Katayama released a statement confirming coordinated yen buying with the US Department of the Treasury last week to counter excessive yen volatility in recent months.
The yen-buying operations from Thursday night through Saturday morning marked the first coordinated market intervention by Tokyo and Washington since 2011, when the yen surged following the Great East Japan Earthquake.
Katayama emphasized that both countries 'will not hesitate to conduct a further joint intervention' if necessary. This warning caused concern among investors, leading to a sharp decline in Tokyo stocks, with the Nikkei index briefly plunging over 2 percent.