The Japanese Yen spiked sharply against the dollar on Monday, May 4, fuelling fresh talk of intervention from Tokyo as geopolitical jitters also lifted the greenback.
The Yen jumped as much as 0.75% to 155.69 per dollar before paring gains. Most of the surge happened in a nine-minute window around midday GMT, 05:00 AM WAT.
The move came hours after Iranian state media reported an incident involving a U.S. warship in the Gulf of Oman, sparking a flight to safe-haven currencies.
By market close, the yen was little changed at 157.12, after notching a 1.5% weekly gain last week, its biggest rise since February. It also held firm against the euro and pound.
The sudden spike revived speculation that Japan’s Ministry of Finance stepped in to prop up the currency. Officials did not immediately respond to requests for comment after Monday’s move.
Analysts say the dollar’s rise reflects classic risk-off positioning. “When tensions flare in the Gulf, traders buy dollars and yen,” one London-based FX strategist noted.
“Today we saw both.” Markets remain on edge as traders watch for official confirmation of intervention and further developments in the Gulf.
