The BOJ raised rates last month and swap markets are already pricing in an about 75% probability of another increase as soon as July.

The U.S. dollar slumped to an eight-week trough to the yen and lingered near a one-month low versus sterling on Thursday, as investor nerves about an inflation-stoking global trade war abated. Japan's currency was also supported by rising expectations for further Bank of Japan interest-rate hikes with a central bank official advocating continued rate hikes,

The U.S. dollar slumped to an eight-week low against the yen and hovered near a one-month low versus the British pound as trade war fears eased. Investors are reassessing the Federal Reserves rate outlook while the Bank