The Japanese Yen spiked unexpectedly versus the greenback on Monday, with traders are pointing to yen-buying intervention by Japanese authorities in an effort to support the currency that has been at levels last observed over 30 years ago.

The greenback steeply slumped, touching 154.40 low against the yen. According to banking sources, banks in Japan have been selling USD/JPY that traded lastly at 155.83 yen.

Traders have been widely anticipating any hints of action from Tokyo to nudge up the currency that has plunged 11% versus the US dollar till now in 2024.

The Japanese yen slumped to 34-year lows despite the shift of the interest rate trajectory by the central bank in unpresented step the previous month.

Traders have projected that despite the shift, the Japanese rates will linger low for a period in the contrary of the slight high interest rate in the US.

A slipped Japanese yen is a privilege for exporters in Japan, but a hassle for policymakers as it spikes import costs, as it will be a burden on inflation and pressure households.