Traders speculate Tokyo stepped into markets to prop up the yen after a sharp intraday rally against the dollar.
The Japanese yen spiked nearly 2% against the US dollar in minutes, triggering speculation that authorities intervened to stem its decline. The move erased earlier losses and pushed USD/JPY below 152, a key psychological level watched by traders.
The yen has weakened over 10% this year, pressured by the Bank of Japan’s ultra-loose monetary policy and widening US-Japan rate differentials. Similar abrupt moves in 2022 and 2023 were later confirmed as official intervention, though no confirmation has been issued yet.
Markets reacted cautiously, with Asian equities paring gains and bond yields dipping as traders assessed the potential for further action.