Yen Surges to 163 Versus Dollar in Post-Intervention Rally

The Japanese yen experienced a significant surge against the US dollar on Wednesday, after having largely retraced its gains following a rare joint intervention by the U.S. and Japan at the end of July.

The yen, which had plummeted to a 40-year low of 163.98 per dollar before the intervention, rose as high as 155.21 afterwards before surrendering some of those gains.

Economists are divided on what prompted this move, with some suggesting it may be an official rate check rather than a direct market intervention.

Hawkish comments from Bank of Japan board member Hajime Takata and BOJ Governor Kazuo Ueda, who signalled a strong chance of a hike this month, may have contributed to the yen's gains.