The Japanese yen traded around 158.2 per dollar on Friday, staying near multi-month lows as uncertainty persists over the timing of interest rate hikes by the Bank of Japan. Japan’s Economy Minister Ryosei Akazawa stated that the economy is at a “critical stage” in overcoming the public’s deflationary mindset but provided no clear indication of when the BOJ may raise rates. On the data front, household spending in Japan declined by 0.4% year-on-year in November, while household income rose 0.7%. Externally, the yen faced additional pressure from a recent widening of the US-Japan yield differential, driven by hawkish signals from the US Federal Reserve. Moreover, investors are awaiting the release of the US jobs report on Friday, which could strengthen expectations for fewer Fed rate cuts this year.