The Japanese yen surged against the dollar after suspected official intervention, paring gains near 161.58 after testing 1986 highs.
USD/JPY fell sharply from near 161.92 to 161.08 in a move widely seen as Japanese authorities stepping in to support the yen. The pair had approached its 2024 intraday high of 161.99, last seen at levels not reached since 1986, before the pullback.
The dollar strengthened broadly as US Treasury yields climbed 5-6 bps across the curve, with the 10-year yield rising 6 bps to 4.51%. The 2-year yield hit a 14-month high of 4.23%, reflecting markets pricing in 42 bps of Fed hikes by year-end. Oil prices declined for a second session, with WTI crude down $1.65 to $74.20.
Equities showed mixed performance, with the S&P 500 closing 0.4% lower while the Russell 2000 rose 0.8%. The Nasdaq dropped 1.4%, led by declines in large tech stocks. Gold prices advanced $24 to $4,185 as investors sought safe-haven assets amid rising yields and intervention concerns.