Mumbai, Jan. 12 -- The Japanese yen hovered above 158 per dollar, staying near one-year lows as thin holiday trading limited volatility. Political uncertainty intensified after talk of a possible snap election in February, while mixed economic data continued to blur the Bank of Japan's rate-hike trajectory. Although Governor Kazuo Ueda reaffirmed a readiness to raise rates if conditions align with forecasts, markets remain cautious ahead of key economic releases this week. Meanwhile, the dollar softened, with the dollar index slipping to around 98.6 after news of a criminal investigation into Fed Chair Jerome Powell raised concerns over central bank independence.

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