The Japanese yen weakened toward 162.5 per dollar on Friday, hovering near its weakest level in four decades as investors saw little sign of decisive action from Tokyo to support the currency.
A recent report also indicated that Japan has no immediate plans to alter the asset allocation of its state pension funds, reducing expectations for near-term support for domestic financial markets.
Investors are now awaiting intervention data due later this month to assess whether Japanese authorities were behind the sharp but short-lived rallies in the yen seen in recent weeks.
The currency also remained under pressure from a sharp rise in oil prices this week, driven by the escalating conflict between the US and Iran, which effectively unraveled the interim peace agreement.
As Japan depends heavily on energy imports from the Middle East, the country remains particularly vulnerable to disruptions in regional energy supplies.