Yen surges against the dollar, analysts suspect official yen buying intervention

NEW YORK, July 30 : The yen rose sharply against the dollar on Thursday, in a move analysts said bore the hallmarks of official intervention by Japanese authorities to prop up the battered currency.The dollar fell by as much as 3 per cent to 158.34 , down from 40-year highs hit earlier this week.It was not immediately clear what drove the market move or whether Japanese authorities were in the market.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 Japanese finance ministry’s foreign exchange division, which directs intervention, could not be reached immediately for comment. "There has been a sharp move lower in dollar/yen that strongly su