Yen Surges in New York as Japan Is Reportedly Seen Intervening Before BOJ Decision
The yen posted its biggest gain against the U.S. dollar in more than two years, as Japanese authorities were said to have stepped into the foreign-exchange market again ahead of the Bank of Japan’s policy decision in an effort to support the weakening currency. During Thursday’s New York trading session, the yen rose as much as 3.3% against the dollar, marking its largest intraday gain since December 2023. A market participant with knowledge of the matter said Japanese authorities intervened in the foreign-exchange market. Nikkei had earlier reported, citing market participants, that Japanese authorities intervened during U.S. trading hours on Thursday and that U.S. authorities also made rate inquiries. U.S. Treasury Secretary Scott Bessent said in an interview with Fox Business that the yen “seems significantly undervalued” and that “excessive volatility” is unhealthy. “Japanese authorities intervening ahead of the Bank of Japan’s monetary policy meeting may be an attempt to magnify the impact by surprising the market, in contrast with the more transparent intervention in April that was easier for the market to identify,” said Rinto Maruyama, senior foreign-exchange and rates strategist at SMBC Nikko Securities. He also said the sharp rise in long-term bond yields in Japan and the U.S. was “a key factor behind Japan’s intervention in the foreign-exchange market and the U.S. rate inquiries.” At 8:25 a.m. Tokyo time, the yen was down 0.2% at 159.86 per dollar, after touching 157.98 on Thursday.