Yen records biggest weekly drop in over two months, dollar climbs for the week

The dollar index climbed about 0.7% for the week, on track for its biggest weekly gain in five weeks, supported by rising oil prices and renewed inflation concerns from the Iran war. The yen was poised for its largest weekly decline in over two months, trading near 40-year lows at 163.81 per dollar, with markets fully pricing out any BOJ rate hike next week despite US Treasury calls for action. Fed rate hike expectations for next week surged to 35.8% from 12.8% a week ago, while the ECB kept rates unchanged but kept a September hike possibility alive.