Yen Surges 3% After Japan’s Currency Intervention

The yen surged 3%, marking its biggest gain in nearly two years, after Japan intervened in the foreign-exchange market.

This action followed a “final” warning from officials to investors against selling the currency.

Japan’s Nikkei newspaper reported that the government bought yen and sold dollars, indicating swift action.

A source familiar with the situation confirmed the intervention occurred, while Japan’s top currency official refrained from commenting on Friday.

The yen had traded at 155.57 per dollar on Thursday, its strongest since late February, before settling around 157.10 in Asian trading on Friday morning.

Prior to the intervention, the currency approached its weakest levels in four decades, raising concerns over inflation due to costlier imports.

Atsushi Mimura, Japan’s top currency official, issued a warning to speculators, stating, “This is a final advisory if you want to escape.”

Finance Minister Satsuki Katayama echoed these sentiments, saying, “The timing for taking bold steps is nearing.”

Neil Jones, managing director of currency sales and trading at TJM Europe, remarked, “This was an alarm-bell moment.”

Market watchers are now focusing on the potential next steps by Japanese authorities, especially after they spent around $100 billion buying yen in 2024.

Previous aggressive interventions by the Bank of Japan in 2022 and 2024 led to significant corrections in dollar strength.