The yen rose slightly on Wednesday, moving away from the closely watched 150 per dollar mark, after a short-lived surge in the previous session stoked speculation that Japanese authorities could have intervened to support the currency.

The Japanese currency was up around 0.12% at 148.93 per dollar in early European trading, after unexpectedly surging nearly 2% at one point on Tuesday to 147.30. The spike came after it slipped to 150.165 per dollar, its weakest since October 2022.

Meanwhile the dollar index, which tracks the greenback against six peers, was down 0.12% at 106.94. It remained close to the nearly 11-month high of 107.34 reached in the previous session.

The euro rose 0.15% to $1.0483. But it did not stray far from Tuesday's low of $1.0448, its weakest level since December, triggering talk of a fall back to $1.

Japanese authorities last year intervened to prop up the yen for the first time since 1998.

The currency has slumped around 14% against the dollar this year as U.S. bond yields have risen sharply compared to their Japanese peers, with the Federal Reserve hiking rates to tame inflation while the Bank of Japan sticks to its ultra-loose monetary policy.

Sterling rose 0.1% to $1.2088, after falling to a nearly seven-month low of $1.20535 in the previous session.

Source : Reuters