TOKYO, July 31 (Xinhua) -- Japanese authorities have intervened in the foreign exchange market to buy the yen and sell the U.S. dollar, following an abrupt surge of the Japanese currency overnight, Kyodo News reported Friday, citing a government source.
Yen-buying picked up overnight during New York trading Thursday, with the currency briefly soaring to the upper 157 range against the U.S. dollar, hitting its strongest level since mid-May, the report said.
The appreciation of nearly 5 yen in about 50 minutes led many traders to believe there was a massive currency intervention by Japanese authorities, it added.
The latest move came as speculation for Japan's currency intervention had persisted since the yen hit 163.99 on July 23, the highest in around 39 years and eight months, with the U.S. dollar continuing to draw buying as a safer asset at a time of crisis amid the Middle East conflict.
Japanese Finance Minister Satsuki Katayama on Friday declined to comment on whether authorities had stepped in, but told reporters, "We are always acting with vigilance."
The country's top currency diplomat, Atsushi Mimura, also did not comment on whether a currency intervention took place. ■
