Yen soars, investors spooked by intervention fears

Japan’s yen surged to a six-week high, sparking rumours of official intervention. Meanwhile, the dollar experienced broad losses as markets anticipated U.S. rate cuts in the near future. Bank of Japan money market data indicated that authorities might have purchased last week. Traders speculated that this week’s movements showed signs of further intervention or markets being spooked by that possibility.

Many traders and Japanese investors, after the intervention, seemed to be looking to reload on their trades. The big move have caught them off guard and triggered a reassessment or unwinding of those positions.

Read more about Japanese yen intervention here.