Yen Surges on Rate Hike Bets, Euro Falls

The yen surged sharply on Thursday, gaining almost 1.5% to reach its strongest level in a month. It touched a high of 156.36 per dollar, extending its overnight jump of 0.9%. Markets were on alert for any official intervention from Tokyo, but analysts suggested the move was more orderly than usual when Japan intervenes.

The Japanese currency's rally was broad-based, with the euro sliding over 1% to 181.62. The yen's rise was attributed to rising bets on Bank of Japan rate hikes rather than intervention by Japanese authorities.