Yen jumps 3% in biggest rally since late 2022 after officials' warning

Japan's yen surged about 3% on April 30, 2026 — its largest one-day rally since late 2022 — after Tokyo officials signaled that currency intervention to support the yen could be imminent. USD/JPY fell sharply to around 155.94 by 1250 GMT as traders cited short-covering and possible official buying following Finance Minister Satsuki Katayama's warning that “decisive action” timing was nearing. The move marked the biggest one-day drop for the dollar in years and follows large investor short positions against the yen. Markets remain on edge given past interventions (last at ~162 per dollar in July 2024), BOJ rate deliberations and geopolitical-driven inflationary pressures that make a weak yen politically sensitive. The threat of intervention and rapid flows is likely to sustain volatility across FX markets and could prompt further central-bank and sovereign responses.