Yen Hits 40-Year Lows as Dollar Soars on Oil Price Surge

The yen has hit 40-year lows despite Japan's efforts to stabilize it. The Japanese Finance Minister, Satsuki Katayama, reiterated that the government is ready to take action in the foreign exchange market, but analysts believe another intervention may only have a short-term effect.

Some economists see the need for a more aggressive path of rate hikes by the Bank of Japan (BOJ) to support the yen. The US Treasury Department has also called for rate hikes, warning against excessive currency volatility.

The dollar is on track for its biggest weekly gain since mid-June, buoyed by rising oil prices and the weakness of the yen. Markers have priced out any chance of a rate hike from the BOJ at its policy meeting next week.