The U.S. dollar weakened against the yen on Thursday, as softer-than-expected U.S. economic data and growing confidence for a Bank of Japan interest-rate hike

The U.S. dollar steadied on Thursday despite the sharp fall in U.S. bond yields after Wednesday’s inflation data as market focus shifted to Donald Trump’s presidential inauguration next week and possible inflationary impact of his policies.

The Japanese yen strengthened on Wednesday amid growing expectations of a Bank of Japan (BOJ) rate hike, while the pound remained stable as cooling UK inflation offered some relief. Markets, however,