The Japanese yen climbed to its highest level against the US dollar in more than two years, driven by reports that Tokyo officials executed another round of foreign exchange intervention.
The move marks a significant escalation in the authorities' efforts to defend the currency after it had been under sustained pressure from the strong dollar and widening interest rate differentials.
The yen's rally extended a trend that began after Tokyo explicitly warned it stood ready to intervene in the foreign exchange market.
According to the Nikkei newspaper, Japanese authorities stepped into the market to buy yen and sell dollars, aiming to stem the currency's decline.
This latest action follows a massive intervention reported earlier in the week, where officials moved aggressively in New York markets to support the yen.
The repeated use of direct market intervention signals that policymakers are increasingly concerned about the pace of the yen's depreciation and its potential impact on domestic inflation and economic stability.
The yen's rally extended a trend that began after Tokyo explicitly warned it stood ready to intervene in the foreign exchange market.