Svmuu News: On Thursday, the yen surged sharply against the U.S. dollar, with traders remaining highly vigilant about the possibility that Japanese authorities might intervene to prop up the yen. It remains unclear what triggered this market volatility, nor is it clear whether Japanese authorities intervened in the market. The magnitude of this fluctuation appears to be smaller than the movements following previous rounds of intervention.
Hirofumi Suzuki, chief foreign exchange strategist at Sumitomo Mitsui Banking Corporation, said, “It is still unclear whether this is intervention. But as reported, the authorities may have shifted their intervention strategy and tactics and may no longer be signaling their intent to intervene in advance, which could make it more difficult for the yen to weaken further.” (Jin Shi)