Mumbai, Aug. 14 -- The Japanese yen hovered around 159.4 per dollar on Friday, heading for its steepest weekly decline in three months as the fading impact of US and Japanese intervention encouraged renewed selling pressure. USD/JPY has climbed to 159.37, with traders increasingly watching the psychologically important 160 level as a potential trigger for fresh official action. Meanwhile, the dollar index remained subdued around 99.7 after softer US inflation data reduced expectations for a September Federal Reserve rate hike, with July producer prices unchanged and following a tame CPI reading earlier in the week. Despite the softer US data, the yen remains vulnerable as traders await signs of whether authorities will step in again near ...