The yen is back near 160 per dollar and headed for its biggest weekly loss in about a month, giving up roughly half the gains sparked by late-July and early-August intervention as traders increasingly conclude that official buying alone cannot reverse the currency's downtrend. It was down about 0.9% on the week at 159.29 after having traded near 164 before July's intervention, and markets viewed 160 as a potential trigger for fresh action. The retreat eased slightly after Reuters reported the Bank of Japan is set to raise rates as soon as September and is considering a faster pace of tightening, reinforcing a view already pushed by former top currency diplomat Mitsuhiro Furusawa that rate hikes are needed alongside intervention. Furusawa has said the yen is clearly too weak, that Japan and the United States could intervene again at any time if trading turns disorderly, and that the BOJ may ultimately want rates at 1.5% to 1.75%. Tokyo Tanshi data showed markets pricing a 76% chance of a September BOJ hike, up from 24% on July 30, though that also leaves the yen vulnerable if the central bank disappoints. The broader currency market was steadier, with support for the dollar from higher oil prices and Middle East tension offset by softer U.S. jobs and inflation data that reduced expectations for a Federal Reserve rate hike. Unchanged U.S. producer prices in July helped cut the perceived chance of a September U.S. hike to about 35%. Traders and analysts said the central issue remains the same: yen-funded carry trades stay attractive while Japan's rates remain low, so intervention may only buy time unless the BOJ validates expectations for faster tightening.