STORY: The yen jumped suddenly against the dollar on Monday (April 29) as traders cited yen-buying intervention by Japanese authorities.
They're trying to stop a relentless fall in the currency to levels last seen over three decades ago.
The yen rose sharply earlier in the day as trade sources said Japanese banks were seen selling dollars for yen.
Traders had been on edge for weeks for any signs of action from Tokyo to prop up the currency.
The yen has fallen 11% against the dollar so far this year.
It plunged to 34-year lows even though the central bank exited from negative interest rates in a historic move last month.
Currency traders have bet that despite the change, Japanese rates will remain low for some time, in contrast to relatively high U.S. interest rates.
Japan's top currency diplomat Masato Kanda declined to comment when asked if authorities had intervened.
Japan's Ministry of Finance was not immediately available for comment.
The yen has been steadily sliding for more than three years and has lost more than one-third of its value against the dollar since the start of 2021.
In real terms the yen has been at its weakest since at least the 1970s.
A weaker yen is a boost for Japanese exporters, but a headache for policymakers.
It raises import costs, adds to inflationary pressures and squeezes households.
The yen fell on Friday (April 26) when the Bank of Japan disappointed traders by keeping its policy settings unchanged.
The central bank also offered few clues on reducing its government bond purchases.
The yen has been under pressure as U.S. interest rates have climbed and Japan's has stayed near zero.
It's led investors to cash out of the yen and buy dollars for its higher yield to earn.
