SINGAPORE, March 7 Reuters The yen hit a onemonth high against the dollar on Thursday on growing speculation that the Bank of Japan could end negative interest rates this month, while bets that U.S. rate cuts could come by midyear weighed on the greenback.

The Japanese currency rallied more than 0.5 to a high of 148.40 per dollar, and made gains against the euro and sterling .

The euro was last 0.53 lower at 161.99 yen, while the British pound fell 0.43 to 189.23 yen.

BOJ board member Junko Nakagawa said on Thursday Japan39;s economy was moving steadily towards sustainably achieving the central bank39;s 2 inflation target.

Her comments come one day after Jiji news agency reported that at least one of the central bank39;s nine board members is likely to say that removing negative interest rates would be reasonable at this month39;s policy meeting.

The potential for a March pivot is growing, said Hirofumi Suzuki, chief FX strategist at SMBC.

Nakagawa39;s comments do not negate this view. As a result, the yen is appreciating, continuing the trend from yesterday. The yen looks strong in the near term.

The yen has weakened for the most part of the past two years owing to stark interest rate differentials. Major central banks aggressively hiked interest rates to tame inflation, while the BOJ remained a lone outlier with its ultraeasy monetary policy stance.

A move by the BOJ away from negative interest rates would come at a time where bets for rate cuts elsewhere…