The yen surged against the dollar on Thursday, likely due to intervention by Japanese authorities. The move came as the dollar weakened after the Fed signaled a bias towards interest rate cuts.
Analysts believe Japan's Ministry of Finance intervened to support the yen, which has been under pressure due to the widening interest rate gap between the US and Japan.
The intervention initially boosted the yen, but the currency later retreated, giving up most of its gains. The yen remains down about 10% against the dollar this year.
The yen's future trajectory remains uncertain, caught in the crosshairs of central bank policies, global economic conditions, and investor sentiment. The Bank of Japan's ability to effectively counter the widening interest rate gap and stabilize the yen will be crucial in determining the currency's path in the coming months.