Yen soars, markets suspect Japan intervention

LONDON, July 30 : The yen surged against the dollar on Thursday, in a move so rapid and large in its scale that it alerted investors to the prospect of intervention by Japan to prop up its weak currency. Markets have been on alert for yen-buying by Japanese authorities, who have warned of action for months as currency weakness exacerbates the cost-of-living impact of rocketing energy import prices.The yen has traded near 40-year lows against the dollar, pressured by Japan's relatively low interest rates and as higher energy prices hit the nation's terms of trade.Dollar/yen fell to as low 157.8 and was last trading at 158.61, down 2.5 per cent on the day. The yen also jumped against the euro, sterling and Australian dollar. COMMENTS:DAISAKU UENO, CHIEF FX STRATEGIST, MITSUBISHI UFJ MORGAN S