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Yen jumps as Nikkei says Japan intervened again to support currency

The yen rose as much as 3.3% versus the dollar in New York trading and closed at 159.53, its biggest intraday move since December 2023.

Reported · Written up by our desk · Major Pairs

The yen surged against the US dollar after Japan intervened again in the foreign exchange market, according to LiveMint Markets citing a Nikkei report that officials took action to prop up the currency.

The yen advanced as much as 3.3% versus the dollar in New York trading on Thursday, the largest intraday move since December 2023. The currency closed at 159.53 as the scale of the move prompted market scrutiny over the intervention's effectiveness.

Nikkei, citing market participants, said the Japanese government and the Bank of Japan intervened, and that US authorities also requested quotes on the dollar-yen rate. LiveMint Markets also noted Japan’s Finance Ministry officials were not immediately available for comment and the US Treasury did not respond to a request.

LiveMint Markets said the yen has been under pressure from rising oil prices, persistent budget deficits, and a widening interest-rate gap. It added that Japan spent a record ¥11.73 trillion buying the currency in the open market last quarter, using holdings of foreign securities, including US Treasuries, according to finance ministry reserve data.

Latest closeNikkei 225 61,434.19 ▼1.5%

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