The Japanese yen was on track for its steepest weekly fall in more than two months, while the US dollar headed for its strongest weekly advance since mid-June. Market moves were shaped in part by higher oil prices, which helped lift the dollar over the course of the week.
The yen remained under pressure near 40-year lows, underscoring how difficult it has been for Japanese authorities to shift market sentiment. Official remarks aimed at supporting the currency appeared to have only a limited effect, even as policymakers repeated that they were prepared to respond.
Traders have been closely watching the gap between verbal support for the yen and actual price action in currency markets. The latest moves suggest that warnings alone have not been enough to reverse the broader trend, with the dollar continuing to find support.
For now, the focus remains on whether the yen can stabilize after its sharp weekly slide and whether stronger steps beyond verbal signals will be needed. Until then, the dollar's weekly rise and the yen's weakness are likely to stay at the center of foreign exchange market attention.
