The U.S. dollar is on track for its biggest weekly loss against the Japanese yen since February, with a decline of approximately 1.7%. This drop follows Japan's intervention to support its currency, reportedly spending up to $35 billion after the yen weakened to 160.7 per dollar, its lowest since July 2024. Japan's top currency diplomat, Atsushi Mimura, indicated ongoing speculative positions, highlighting the government's concern over rapid yen fluctuations. Analysts suggest that further interventions may occur, especially with the Golden Week holiday approaching, recalling past interventions during similar periods. Meanwhile, the European Central Bank (ECB) and the Bank of Japan (BOJ) have maintained interest rates but hinted at possible hikes in June to combat inflation driven by rising energy costs. The dollar's performance is also influenced by shifting market expectations regarding Federal Reserve policy, with reduced anticipation for rate cuts.