LONDONSINGAPORE, July 23 Reuters The yen rose on Tuesday as investors reacted to comments from a senior Japanese politician that added to pressure on the Bank of Japan to keep hiking rates to boost the currency.

Meanwhile, the dollar inched higher as traders waited for inflation data later in the week, and the Australian and New Zealand dollars suffered after China39;s surprise interest rate cut.

The dollar was last down 0.55 against the Japanese yen at 156.13, after falling to a fiveweek low of 155.375 on Thursday.

Senior ruling party official Toshimitsu Motegi said overnight that the Bank of Japan should more clearly indicate its resolve to normalise monetary policy, including through steady interest rate hikes. The BOJ next sets rates on July 31.

The yen derived support from further comments from Japanese politicians overnight, said Lee Hardman, currency analyst at Japanese bank MUFG, who added that his comments indicated growing unease among politicians about BOJ policy.

It closely follows calls last week from Digital Transformation Minister Kono Taro who called on the BOJ to raise interest rates to provide more support for the yen.

The yen has found some support on the back of Tokyo39;s recent bouts of intervention to prop up the currency and as traders looked to the BOJ39;s decision. However, most economists polled by Reuters expect the BOJ to keep rates on hold at the meeting.

The dollar index , which tracks the U.S. currency against six peers, rose…