The yen rose sharply on Monday amid speculation that Japanese authorities may have intervened again to support the currency, following coordinated action with the United States last week.
The currency swung from a small decline to gain as much as 1.4% against the dollar during morning trading in Tokyo, according to market data. The move revived expectations that officials stepped in to prop up the yen after its recent weakness.
Last week, the US and Japan took joint action on the yen, which had fueled speculation of continued intervention. Sonja Marten, chief economist at DZ Bank, discussed the global market reaction to the latest yen movement, noting the impact of the coordinated US-Japan effort.
The rally marks the latest development in a period of heightened volatility for the yen, as traders watch for signs of further official support. Neither the Japanese government nor the US Treasury has confirmed any new intervention as of Monday.