The yen is on track for its largest weekly percentage decline in more than two months, even as Japan's Finance Minister Satsuki Katayama reiterated the government's readiness to act in the foreign exchange market. The dollar rose nearly 0.9% against the yen this week, hitting 163.98 on Thursday, its strongest since November 1986, while the dollar index gained nearly 0.7% for its biggest weekly advance in five weeks. Analysts say verbal support and potential intervention may have only a short-term effect without more aggressive rate hikes by the Bank of Japan, which markets have fully priced out for its upcoming policy meeting. Rising oil prices and renewed inflation fears have buoyed the dollar, with expectations for a Federal Reserve rate hike next week climbing to 35.8% from 12.8% a week ago.