The US dollar strengthened against major currencies in New York trading on Friday, closing the week with its biggest gain since mid-June. The dollar index edged up 0.02 percent to 101.468, and rose around 0.7 percent for the week, marking the largest weekly advance in five weeks. The dollar gained nearly 0.9 percent against the yen over the week, reaching 163.84 yen from 163.80 yen, and during the week touched its highest level since November 1986 at 163.98 yen. Although Japan's finance minister reiterated readiness to intervene in the market, analysts view that intervention alone may have only a temporary effect without other measures, particularly a rate hike by the Bank of Japan. Meanwhile, the US Treasury Department also called on the BOJ to raise rates. The euro weakened to 1.1370 dollars from 1.1377 dollars, and lost nearly 0.6 percent for the week, after the ECB held rates steady but left the door open for a hike in September. Markets are pricing in a 70.8 percent chance that the ECB will raise rates at its September meeting. The probability of a Fed rate hike at next week's meeting rose to 35.8 percent from 12.8 percent a week earlier, as the conflict in Iran reignited inflation concerns.