It started as a rumor around 4 hours ago, but Nikkei has just confirmed it.
The Japanese government intervened in foreign-exchange markets to buy yen and sell dollars on Thursday, while U.S. authorities executed a rate check, a move often seen as a precursor to intervention, according to market participants.
The moves suggest the two governments are coordinating to curb the yen's depreciation.
The yen surged from around 9:30 a.m. Eastern Time on Thursday. It strengthened to the 157 range against the dollar from around 162.8 in roughly 50 minutes. The Japanese government conducted large-scale yen-buying, market sources said.
The Japanese currency later retreated to the 159 range before strengthening again to the upper 158 range shortly after 1 p.m. The Federal Reserve Bank of New York, acting on directions from the U.S. Treasury Department, asked multiple banks to provide rate quotes for currency trades, an operation known as a rate check. It is unusual for the two governments to intervene in foreign-exchange markets at the same time.
