Key facts
- The yen surged against the dollar following weak U.S. employment data.
- U.S. nonfarm payrolls decreased by 23,000 jobs in July.
- The dollar fell as much as 1.1% to 156.68 yen.
- Japanese and U.S. authorities previously intervened jointly to support the yen.
- Japan's finance ministry confirmed the coordinated intervention and signaled readiness for further action.
The Japanese yen jumped against the dollar on Friday after a surprisingly weak U.S. employment report, with traders alert to the prospect of intervention just days after Japanese and U.S. authorities jointly stepped into the foreign exchange markets to lift the currency. The dollar fell by as much as 1.1% to 156.68 yen, moving away from a July high of 163.99 yen. Analysts suggested the weakness in the jobs data was a fundamental reason for the dollar's decline, impacting expectations for Federal Reserve policy. The U.S. nonfarm payrolls decreased by 23,000 jobs last month, a significant downside surprise compared to economists' forecasts of an 80,000 increase. Japan's finance minister stated that Washington and Tokyo had been in close communication and would not hesitate to intervene. This follows a rare coordinated yen-buying intervention by both countries last Friday.