Japanese Yen Spikes Nearly 3% as Tokyo Intervention Talk Resurfaces
By Aboki Forex —
The Japanese yen jumped almost 3% on Thursday, trading at its strongest level against the US dollar since late May and reigniting speculation that Japanese authorities stepped in to support the currency.
The sharp move came after the yen spent weeks stuck near multi-decade lows against the dollar.
Yen at 163.87 Before Sudden Rebound
In early Thursday dealing, the yen fell as low as 163.87 per dollar before spiking to 158.55. That brought the currency back to levels last seen in late May, a dramatic swing in a single session.
The yen has been hovering at its lowest levels against the dollar in more than four decades, putting pressure on Japanese policymakers to act. The sudden jump immediately sparked market chatter about possible currency intervention from financial authorities in Tokyo, though there was no official confirmation.
How the Dollar/Yen Cross Works
The dollar/yen pairing stands out in currency markets because a lower level for the yen means a firmer Japanese currency. So Thursday's drop from 163.87 to 158.55 represented a strong gain for the yen, not a fall.
Traders are now watching closely to see if Japanese officials follow up with more action or verbal warnings to keep the yen from sliding back toward its weakest levels.