The yen once soared more than 3% against the US dollar, the biggest increase since December 2023, triggering speculation that the Japanese authorities are once again interfering in the foreign exchange market. During Thursday's New York trading session, the yen rose 3.3% against the US dollar to 157.98 yen to 1 US dollar, the biggest intraday increase since December 2023. At the time, Bank of Japan Governor Kazuo Ueda indicated that the Bank of Japan was preparing to withdraw from the last negative interest rate system in the world at the time. Geoffrey Yu, senior strategist at Bank of New York Mellon said, “Such large fluctuations strongly indicate that the Japanese authorities are likely to have intervened in the foreign exchange market. However, the effects of the intervention remain to be seen.” In an interview earlier this month, Japan's top foreign exchange official Jun Mimura did not reaffirm Japan's Ministry of Finance's consistent statement on exchange rate policy, including the phrase “will be ready to take decisive action at any time” which is generally regarded as implying possible interference in the foreign exchange market.

The yen once soared more than 3% against the US dollar, the biggest increase since December 2023, triggering speculation that the Japanese authorities are once again interfering in the foreign exchange market. During Thursday's New York trading session, the yen rose 3.3% against the US dollar to 157.98 yen to 1 US dollar, the biggest intraday increase since December 2023. At the time, Bank of Japan Governor Kazuo Ueda indicated that the Bank of Japan was preparing to withdraw from the last negative interest rate system in the world at the time. Geoffrey Yu, senior strategist at Bank of New York Mellon said, “Such large fluctuations strongly indicate that the Japanese authorities are likely to have intervened in the foreign exchange market. However, the effects of the intervention remain to be seen.” In an interview earlier this month, Japan's top foreign exchange official Jun Mimura did not reaffirm Japan's Ministry of Finance's consistent statement on exchange rate policy, including the phrase “will be ready to take decisive action at any time” which is generally regarded as implying possible interference in the foreign exchange market.