The Japanese yen jumped 1% to around 150 per dollar on Friday, hitting a six-week high as investors reacted to data showing Tokyo inflation rose above 2% in November.

The inflation data reinforced expectations for another interest rate hike from the Bank of Japan in December.

Markets now price in about a 60% chance of a 25 basis point rate hike next month, up from about 50% a week ago. Tokyo's inflation figures are often seen as a leading indicator of national price trends, with national CPI data usually following in about three weeks. However, national CPI for November will not be released before the BOJ's monetary policy meeting in December.

Meanwhile, the latest figures for industrial production, retail sales and employment pointed to a slowdown in economic activity in Japan.

Externally, the yen found support from a broad-based decline in the U.S. dollar, as U.S. PCE inflation data matched expectations, signaling little change in the Federal Reserve's approach to rate cuts.

Source: Trading Economics