The dollar continues to rise despite a suspected intervention by the Bank of Japan

The dollar rose on Monday, despite another suspicion of currency intervention by Japan.

Overnight, the yen hit a low of 149.70 per dollar and then soared to a high of 145.28 in a matter of minutes, suggesting that the Bank of Japan (BOJ), which serves as the Ministry of Finance of Japan, has intervened again.

After the BOJ's supposed intervention, the dollar held on but weakened, briefly going into negative territory following the release of S&P flash PMI data, which showed U.S. business activity declined in October for the fourth straight month, further evidence of a weakening economy amid high inflation and rising interest rates.

Edward Moya, senior market analyst at OANDA, said the data may indicate that a long period of a strong dollar is nearing an end. He added that the U.S. economy has consistently shown signs of high resilience and now that seems to be winding down. The market is now waiting to find out how much the economy will weaken and whether the Fed will pause after raising rates in December and February, Moya said.