The yen is on track for its biggest weekly loss in more than two months, with intervention warnings doing little to deter investors betting on further weakness.

Japan’s currency is approaching the closely watched ¥165-per-dollar level after hitting a fresh 40-year low of ¥163.99 on Thursday. It’s dropped about 0.9% so far this week, putting it on course for its worst weekly performance since May when it weakened in the aftermath of Japan’s record intervention.

Meanwhile, the dollar has climbed as escalating tensions in the Middle East spark concerns over energy supply disruptions and fuel expectations that the Federal Reserve will raise interest rates.