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2026-07-30 22:52:52
[Analysts: Now is indeed a favorable time for Japanese authorities to intervene and support the yen] The yen surged on Thursday, a move widely seen as a typical sign of Japanese government intervention in the foreign exchange market to support the yen, which had fallen to a 40-year low. The dollar fell as much as 3% against the yen to 158.34, retreating from a 40-year high reached earlier this week and on track for its biggest one-day drop since the end of 2022. For months, the Japanese government has warned that it would take action if the yen continues to weaken. The yen's depreciation has further exacerbated cost-of-living pressures due to soaring energy import prices, keeping the market highly vigilant for potential intervention by Japanese authorities. This yen surge occurred on the eve of the Bank of Japan's policy meeting on Friday, and after the Federal Reserve's divided vote on Wednesday to keep interest rates unchanged, pushing the dollar weaker. Foreign exchange analysts say that month-end positioning adjustments, weak US economic data, and an overall weakening dollar have provided a favorable opportunity for Japanese authorities to intervene and support the pressured yen. Japanese Finance Minister Satsuki Katayama has repeatedly reiterated recently that the government is prepared to take action in the foreign exchange market.
