Japanese Yen Surges in Apparent Currency Intervention

Japanese authorities may intervene again in the currency market this year as U.S. interest rates are expected to remain high.The Japanese Yen strengthened sharply overnight after crashing to its lowest level since April 1990, breaking 160/USD. The FT reports that traders in Hong Kong, Australia and London said it was “highly likely” that the recovery was due to Japan’s finance ministry selling dollar reserves and purchasing the Japanese currency for the first time since late 2022. While analysts suggested the size and speed of…