An exchange traded fund pegged to the Japanese yen’s movements against the U.S. dollar dropped more than 3% in Thursday’s preopen trading as Japan’s central bank intervened in currency markets in a bid to halt the surge in the yen.

Japanese Finance Minister Yoshihiko Noda said the Bank of Japan wouldn’t comment on whether it intervened in London trading hours, but added the bank will take whatever steps necessary to stop a continued yen appreciation, according to a Dow Jones Newswires report.

CurrencyShares Japanese Yen Trust (NYSEArca: FXY) was down 3.3% in U.S. premarket trading Thursday.

The yen’s surge to all-time highs against the dollar has triggered speculation Japan’s central bank would step in and try to weaken the currency. The yen’s rise hurts Japanese exporters. [Japanese Yen ETFs Rise to Record Amid Intervention Talk]

The yen ETF was up about 5% so far this year through Wednesday’s close.

CurrencyShares Japanese Yen Trust

Read the disclaimer; Tom Lydon is a board member of Rydex|SGI.

The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.