Japanese authorities executed a massive foreign exchange intervention in New York markets on Thursday, buying yen and selling dollars to stem the currency's decline, according to a report by the Nikkei newspaper citing market sources.
The operation marks a significant escalation in Tokyo's defense of the yen, moving beyond the verbal warnings that have characterized recent policy responses. U.S. authorities also participated in the effort, conducting so-called "rat" operations to support the coordinated move.
This direct action follows a period where the yen had extended its rally against the dollar after Tokyo explicitly signaled it stood ready to intervene.
The shift represents a fundamental change in strategy, with Japanese officials moving away from public threats toward covert, targeted interventions designed to catch short sellers off guard.
The intervention underscores the growing pressure on the yen and the willingness of central banks to act decisively to stabilize exchange rates.
Markets will now assess the durability of the yen's support and whether further coordinated action is likely if selling pressure resumes.