Japan Intervenes as Japanese Yen Jumps More Than 2%

The japanese yen surged more than 2% after Japan intervened in the foreign-exchange market, hours after officials issued a final warning against selling the currency. The move was the yen’s biggest gain in three years.

Japan’s Finance Ministry in Tokyo did not immediately respond to requests for comment. Nikkei reported, citing a government official, that the government bought yen and sold dollars.

Tokyo Warning

Officials had warned investors against selling the currency before the intervention. Several traders and strategists said the speed of the move pointed to action in the market rather than a slow shift in trading sentiment.

G7 Alert Rule

Economic officials in the U.S. were notified ahead of Japan’s intervention. The effort matched a Group of Seven practice of alerting counterparts and acting only when there is risk of excess volatility.

For investors, the immediate takeaway is that Tokyo appears ready to act after a sharp warning, and that can change how traders position around the yen in the short term.