Yen's Slide Triggers Rate Hike Bets Amid Fresh Intervention Fears

The Japanese yen is headed for its biggest weekly loss in about a month, falling around 0.9% to 159.29 per dollar.

This decline mirrors a similar selloff in May when the currency was also backsliding after official buying.

Traders are now wagering that either rate hikes or another round of intervention would be needed to stem the yen's decline, with the 160 level seen as a potential trigger for fresh official action.

The Bank of Japan is reportedly set to raise rates as soon as September and consider more aggressive hikes, citing three people familiar with policymakers' thinking.