Dollar Holds Near Weekly High as Yen Weakens Again

The Japanese yen weakened for a second consecutive day on Friday, while the US dollar held near its highest level in nearly a week ahead of key central bank decisions next week.

The USD/JPY pair was around 154.34, with the dollar up 1.2% against the yen this week, although it's down over 3% for the past month after the yen's sharp rally earlier in September.

Markets are awaiting US inflation data later on Friday and the Federal Reserve's meeting next week, which is expected to be contentious with a 71.3% probability of a 25-basis-point rate hike priced into Fed funds futures.