Yen Plunges as Dollar Rises Amid Oil Price Shock

The Japanese yen has experienced its largest weekly decline in more than two months. Despite Japan's efforts to support the currency, verbal assurances from Finance Minister Satsuki Katayama have had a muted impact.

The dollar, on the other hand, is set for its biggest weekly gain since mid-June, driven by rising oil prices and increased expectations of a rate hike by the U.S. Federal Reserve.

Thierry Wizman, global FX & rates strategist at Macquarie Group in New York, attributes the dollar-yen's performance to the yen's low interest rates and terms-of-trade shock from higher oil prices.