The dollar weakened against the yen on Thursday ahead of a U.S. inflation report that investors will scrutinize to gauge the path for interest rates. The yen rose 0.3% to a one-week high of 162.88 per dollar, though traders said the move did not reflect intervention by Japanese authorities. The dollar had initially gained after the U.S. conducted air strikes in Iran, but came under pressure as focus shifted to the Personal Consumption Expenditures Index due at 1230 GMT, with economists expecting annual price pressures to have eased to 3.7% in June from 4.1% in May. The euro was flat at $1.1477, while the dollar index was muted at 100.67. The Bank of England kept rates on hold as expected, but the pound firmed 0.1% to $1.338 after a third policymaker backed a hike, and traders now see a 34.5% chance of a BoE rate increase in September.