Fragile yen set for weekly decline as intervention risks mount

The dollar held near 162.36 against the yen, heading for a weekly gain of over 0.5% as the Japanese currency remained fragile on intervention watch. Renewed U.S.-Iran tensions added uncertainty around energy prices and global inflation, though equity markets rallied overnight. Goldman Sachs analysts noted that without a shift in the macro backdrop of higher-for-longer U.S. yields and weak yen fundamentals, the currency will likely keep weakening over the months ahead.