The yen jumped more than 2.5% against the dollar on Thursday, climbing from a trough beyond ¥160 to around ¥155.50 after reports that Tokyo intervened in the foreign‑exchange market. Finance Minister Satsuki Katayama warned speculators to unwind short bets, describing the move as a prelude to “decisive action” on the falling currency. Currency markets reacted instantly, wiping out losses for yen‑short positions.

Nikkei cited government sources confirming the intervention, while chief currency diplomat Atsushi Mimura said he was in constant contact with Washington, suggesting U.S. tacit approval for a joint response. The yen’s slide to ¥160.72 earlier in the day sparked fears that Japan’s import‑dependent economy would feel the sting of higher energy costs linked to the Iran conflict. Traders likened the move to the mid‑2024 intervention level, testing the ministry’s resolve. Analysts noted that the timing, during the Golden Week holiday, limited domestic market reaction but allowed authorities to act overseas.

Nomura’s G10 FX strategist Dominic Bunning said the Ministry of Finance appeared uncomfortable and warned that issuing alerts without backing them could erode credibility. Tokyo’s 2024 intervention tally already exceeds $100bn, underscoring a willingness to deploy massive resources to curb yen weakness. The rapid rebound leaves investors with a firmer yen near ¥155, easing immediate pressure on import‑cost calculations. The move also tightened futures spreads.