Yen Heads for Steepest Weekly Drop Since May Amid Dollar Strength

The Japanese yen is on track for its biggest weekly decline since May, despite verbal efforts from Tokyo to stabilize the currency.

Despite Japan's pledges, analysts say even intervention would only buy policymakers time and not change the fundamental forces driving the yen's weakness.

The US Treasury Department has joined calls for rate hikes by the Bank of Japan, warning that excessive currency volatility is undesirable.

Dollar strength has also contributed to the yen's slide, with benign US inflation data briefly supporting hopes that price pressures would cool soon. However, escalating Middle East tensions have revived concerns about energy-driven price pressures, pushing oil prices over $100 a barrel this week for the first time in nearly two months.