Yen up against dollar in surprise move

The Japanese yen (JPY) made a strong recovery on Monday, gaining ground against the US dollar, which dropped from 160.245 yen to 155.01 yen, a notable turnaround after weeks of decline, Reuters reported.

Market speculation points towards intervention by Japanese authorities to bolster the weakening yen, which had reached its lowest point in 34 years.

Trade sources reported sightings of Japanese banks selling dollars for yen, further fueling this theory.

This action comes after a period of heightened anxiety among traders, who anticipated intervention from Tokyo to support the currency that has fallen roughly 11 per cent against the dollar year-to-date.

Earlier this month, the United States, Japan, and South Korea issued a rare joint warning, agreeing to closely monitor currency market developments. Additionally, Japan has intensified its rhetoric against excessive yen depreciation.