The Japanese yen traded at 163.8 per US dollar after hitting a fresh 40-year low of 163.99 in the prior session, as repeated warnings of possible intervention failed to curb the currency’s weakness amid broad US dollar strength. Traders brushed off remarks from Japan’s Finance Minister that the government was prepared to take decisive action in the forex market if needed, as well as reports that BOJ officials are open to a faster pace of rate increases than markets expect. Concerns over PM Sanae Takaichi’s fiscal policy are also weighing on the currency, while escalating US-Iran tensions have fueled concerns about Japan’s economy given its heavy reliance on imported energy, leaving the yen vulnerable to higher fuel costs. Meanwhile, Japan’s headline inflation rose to a six-month high in June, supporting the case for more rate hikes. The yen has fallen 0.9% so far this week, on track for its worst weekly performance since May, when it fell following Japan’s record intervention.