Japan's yen has rebounded sharply against ‌the US dollar after authorities intervened to prop up the embattled currency from near two-year lows.

The yen surged as much as 3 percent in London trading hours on Thursday after Japanese Finance Minister Satsuki Katayama warned that "decisive" action was approaching. Two sources said officials had intervened to buy the yen after it sank to its weakest level against the dollar since July 2024.

The yen breached 160 against the greenback this week, a level that has previously triggered intervention, as fears of a further escalation in the Middle East conflict lifted ⁠oil prices and piled pressure on the Japanese currency.

The yen's prolonged weakness in part reflects the Bank of Japan's slow retreat from ultra-easy policy. The central bank on Tuesday held rates steady at 0.75 percent but signalled a June hike by talking up the risks of an inflation overshoot. (Reuters)



Edited by Robert Kemp