Strong dollar pushes yen to 40-year low as clock ticks on intervention

The Japanese yen weakened to 162.41 per dollar, hitting a 40-year low, with Japan's Finance Ministry signalling readiness to intervene. The dollar index climbed to 101.32, supported by bets on a hawkish Federal Reserve, with traders pricing in a 61% chance of a US rate hike by September. Strong dollar dynamics and yen weakness could pressure emerging market currencies, including the rupee, and weigh on FII flows into Indian equities.