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Yen jumps after Nikkei says Japan intervened again

The yen rose as much as 3.3% versus the dollar in New York trading and closed at 159.53, the most intraday gain since December 2023, according to the report.

Reported · Written up by our desk · Major Pairs

The Japanese yen surged against the US dollar after Japan’s Nikkei newspaper reported that authorities intervened again to support the weakening currency. The yen gained as much as 3.3% versus the dollar in New York trading on Thursday, the biggest intraday move since December 2023, and it closed at 159.53.

BNY strategist Geoffrey Yu said the size of the move strongly suggests intervention, while noting its effectiveness remains in question. Nikkei, citing market participants, reported that Japanese government and Bank of Japan officials stepped in in the foreign exchange market and that US authorities also requested quotes on the dollar-yen rate.

The yen has been under pressure amid rising oil prices, persistent budget deficits, and a wide interest-rate gap versus the United States. LiveMint Markets noted Japan had spent a record ¥11.73 trillion buying the currency in the open market last quarter, drawing on holdings of foreign securities including US Treasuries, according to finance ministry reserve data.

Japan last returned to direct intervention after a quarter century in 2022, and it acted again in 2024 as authorities tried to slow depreciation against the dollar. The report also pointed to the challenge of pushing back against the $9.5 trillion a day global foreign exchange market.

Latest closeNikkei 225 61,434.19 ▼1.5%

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