By Jessica Fleetham and Megumi Fujikawa
The Japanese yen jumped by 3% to a two-month high against the U.S. dollar on Thursday, raising the prospect that the Japanese government has intervened to prop up the currency after officials stepped up verbal warnings against speculative moves that threaten to accelerate inflation in Japan.
The move came after the yen recently dropped to a 40-year low of 163.94 per U.S. dollar, LSEG data showed.
The dollar dropped to a low of 157.96 Japanese yen on Thursday, according to LSEG. The DXY dollar index, which measures the dollar's value against a basket of currencies, also fell 1% to 99.890.
Japanese Finance Minister Satsuki Katayama has recently issued verbal warnings.
