SINGAPORELONDON, Sept 11 Reuters The yen jumped on Monday as comments from Bank of Japan BOJ Governor Kazuo Ueda stoked hopes that Japan could soon herald a new era away from negative rates, while the dollar slid ahead of this week39;s key U.S. inflation reading.

The greenback tumbled ahead of U.S. inflation data due on Wednesday, with traders on the lookout for whether the world39;s largest economy is indeed on track for a soft landing, and whether the Federal Reserve has further to go in raising rates.

The Japanese currency strengthened 1.2 to 146.06 per dollar, after touching its highest since Sept 1, boosted by weekend comments from Ueda that the central bank could end its negative interest rate policy when achievement of its 2 inflation target is in sight.

Ueda told the Yomiuri newspaper in an interview that the BOJ could have enough data by yearend to determine whether it can end negative rates.

The yen has come under pressure against the dollar as a result of growing interest rate differentials with the United States since the Federal Reserve began its aggressive ratehike cycle last year while the BOJ remains a dovish outlier.

It seems that Ueda39;s comments were intended to stop the yen39;s slide against the dollar, said Takehiko Masuzawa, trading head at Phillip Securities Japan. His comments are working almost the same as government intervention.

Since the yen weakened past the 145 per dollar threshold last month, traders have been on alert for any signs…