Yen Falls to Near Four-Decade Lows Amid Rising Rate Hike Expectations

The Japanese yen is on track for its biggest weekly loss in about a month as the effects of U.S. and Japanese intervention fade.

Since July's intervention, the currency has lost roughly half its gains, dropping 0.9% this week to 159.29 per dollar.

Before the intervention, it was trading near 164 per dollar, and traders see the 160 level as a potential trigger for fresh official action.

Around 76% of markets now expect the Bank of Japan to raise interest rates in September, up from 24% on July 30.