JULY 31, 2026

LONDON/NEW YORK/TOKYO, July 30 (Reuters) – Japan's yen surged sharply against the U.S. dollar, prompting widespread market speculation that Japanese authorities intervened to support the currency after it weakened to four-decade lows.

The Japanese finance ministry did not immediately comment, and Reuters could not independently confirm intervention. However, the scale of the yen's gains and unusually heavy trading volumes led analysts to believe official action was likely.

The dollar fell as much as 3% to 158.34 yen after trading near 164 earlier in the week. Investors were also focused on the Bank of Japan's upcoming policy decision following the U.S. Federal Reserve's decision to leave interest rates unchanged.

Analysts said the rapid move was consistent with intervention, while softer U.S. data, month-end positioning and a weaker dollar may have provided favourable conditions for Japanese authorities. Previous intervention episodes have also followed Federal Reserve meetings.