Dollar sinks on yen intervention talk, gold breaks $5,000

Hong Kong: The dollar fell in Asian trade Monday amid speculation US officials could join their Japanese counterparts to help support the yen after a...

Hong Kong: The dollar fell in Asian trade Monday amid speculation US officials could join their Japanese counterparts to help support the yen after a recent sell-off, while equities started the week with losses.

Reports that the Federal Reserve Bank of New York had checked in with traders about the yen's exchange rate sparked a surge in the Japanese currency, according to Bloomberg, pushing it up more than one percent to 153.89 per dollar -- its strongest level since November.

The yen has been sliding amid worries about Japan's fiscal position, the central bank's decision not to hike interest rates further and expectations that the US Fed will hold off cutting its own borrowing costs this week.

The last time Japanese authorities stepped in to support their unit was in 2024 when it hit 160 to the greenback.

The prospect of authorities stepping into financial markets saw the dollar retreat across the board, with the euro, pound and South Korean won also well up while the Singapore dollar hit an 11-year high.