The Japanese yen surged 3% on Thursday, marking its most significant single-day increase in over three years. The rally followed stepped-up verbal support and stark warnings from Tokyo officials, including the finance minister, that intervention to prop up the currency could be imminent.
Earlier on Thursday, the currency had been trading at its weakest levels since July 2024. These levels were considered a trigger point for potential government intervention to stabilize the currency.
A government source indicated that officials have intervened by buying the currency. Tokyo officials also warned that intervention in other markets, including energy, could be imminent.