The yen hit a one-month high against a broadly softer dollar on Thursday after Japanese fourth quarter growth data came in surprisingly strong, reviving talk of a Bank of Japan rate hike next week. The dollar continued losing ground, hitting a fresh six-week low against the euro, after comments on Wednesday from U.S. Federal Reserve Chairman Ben Bernanke rekindled debate about the prospect of a U.S. rate cut. Japan's economy expanded at an annualised 4.8 percent in the October-December quarter, beating market expectations for growth of 3.8 percent, thanks to a recovery in personal consumption. The figures stoked talk of a possible rate hike from 0.25 percent when the BOJ policy board meets on Feb. 20-21. "Following the extremely strong GDP data the market has started to attach a significantly higher probability to a rate hike next week and this is leading to short covering in yen," said Michael at Dresdner Kleinwort in Frankfurt. The euro was steady at $1.3131 , after hitting a six-week high of $1.3154 earlier. Several Japanese politicians said the GDP data proved the economy was on the recovery path and Prime Minister Shinzo Abe said it was up to the BOJ to decide on monetary policy. Analysts said this seemed to suggest that unlike last month, the BOJ will not come under political pressure not to hike. But even if the BOJ bumped up rates to a decade-high 0.5 percent, many market players believe the yen would still be hobbled by its low yield compared with other major currencies. A Reuters poll found market players split on whether the BOJ will raise rates next week, with 24 of 49 traders and analysts in Tokyo's currency and bond markets expecting a move.