The Japanese yen strengthened against the U.S. dollar as investors increasingly priced in another Bank of Japan rate hike in the coming months, supported by recent comments from central bank officials and stronger-than-expected inflation data in Japan. In Tokyo trading on the morning of the 24th, dollar-yen moved between 158.73 yen and 159.00 yen, later trading around 158.76 yen. The dollar also weakened against the euro: EUR/JPY rose from 185.46 yen to 185.66 yen before easing to around 185.50 yen, while euro-dollar advanced from $1.1672 to $1.1687 and held near $1.1684. The U.S. Dollar Index remained near recent lows as slower job creation, cooling consumer-price gains and expectations for possible Federal Reserve rate cuts later this year pressured Treasury yields and reduced the dollar's yield advantage over the yen. A BoJ hike would narrow the interest-rate differential between Japan and the United States and could support further yen gains, although unexpected U.S. inflation data or a shift in BoJ rhetoric could reverse the move. Traders are focused on upcoming economic indicators and central-bank communications, while a stronger yen could weigh on Japanese exporters' competitiveness and a weaker dollar could make U.S. goods more affordable abroad.