Yen Surges 0.7% to 155.5 After First FX Intervention Since 2024
The yen surged 0.7% to 155.5 per dollar after Japan’s first FX intervention since 2024, with authorities buying yen and notifying US officials ahead of the move. Futures trading hit a record 631,000 JPY/USD contracts, boosting volatility and potential bank trading revenues.
1. Japan Executes First FX Intervention Since 2024
Japan’s top currency officials bought yen and sold dollars in Tokyo on Thursday, marking the first direct market intervention since 2024. US economic officials were notified in advance as authorities sought to stem dollar-strength pressures that had driven the yen toward multi-year lows.
2. Yen Advances Toward 155.5 per Dollar
The yen jumped 0.7% to reach 155.5 per dollar in late trading, surpassing the level seen during Thursday’s earlier 3% surge. Traders warn the initial gains could erode without further action, recalling repeated steps taken around last year’s Golden Week holidays.
3. Record Futures Volume and Banking Implications
CME Group data showed JPY/USD futures volume soared to 631,000 contracts, the highest single-day total ever recorded. Elevated trading volumes may translate into higher revenue for bank trading desks like those at SMFG but also increase exposure to sudden reversals.