The yen hit its strongest level against the dollar since December, outperforming other major currencies on Thursday amid growing speculation the Bank of Japan will hike rates sooner rather than later.

Japan’s currency climbed as much as 1% to ¥149.95 against the dollar, a level it hasn’t touched since Dec. 9, before paring gains. Government bond yields are also on the rise, with the 10-year benchmark hitting its highest level since 2009. Overnight index swaps are pricing in an 84% chance of a rate hike by the central bank’s July meeting, compared with about 70% odds at the start of this month, with a hike now seen as certain by September.

Japan’s recent data has supported the BOJ’s case for raising rates, with gross domestic product outperforming forecasts and nominal wages jumping by the fastest pace in nearly three decades. Central bank Gov. Kazuo Ueda also said on Thursday that he did not discuss rising yields in a meeting with Prime Minister Shigeru Ishiba.