Yen heads for biggest weekly drop since May despite Tokyo's support pledges

The Japanese yen is heading for its biggest weekly drop since May despite Tokyo's verbal support pledges, as structural pressures persist and the Bank of Japan remains slow on rate hikes. The US dollar strengthened, gaining 0.89% for the week, supported by rekindled inflation concerns as oil prices topped USD 100 a barrel amid Middle East tensions. The US Treasury yield on 30-year bonds held above 5%, while ECB kept rates unchanged but left a September hike possibility alive.