The Japanese yen rose to its highest level in six weeks against the dollar on Friday after inflation data from Tokyo exceeded expectations. The core consumer price index for Tokyo, which excludes fresh food prices, increased by 2.2% year-on-year in November, higher than the forecasted 2.1% and October’s 1.8%. This fueled speculation that the Bank of Japan may raise interest rates in its upcoming policy meeting.

The dollar weakened to 149.62 yen, briefly touching 149.47 yen, its lowest since October 21. For the week, the dollar recorded a 3.38% loss against the yen, the largest decline since July. Trading volumes were lighter due to the U.S. Thanksgiving holiday, adding to the yen’s upward momentum.

The dollar index, which measures the currency against six major peers, slipped to 105.74 but remained on track for a 1.78% rise in November. This reflects market optimism about potential growth-driven policies from the incoming U.S. administration.

U.S. economic data is influencing expectations for Federal Reserve policy, with markets assigning a 66% chance of a 25 basis point rate cut at the Fed’s December meeting but only a 17% chance of another reduction in January. The November jobs report, set for release next Friday, will be a key indicator of the Fed’s next move.

In Europe, the euro strengthened slightly to $1.0578, recovering from a tough month that saw it lose 2.8% due to the dollar’s strength. Inflation data from France and Germany remained steady, and European Central Bank officials offered mixed views on future rate adjustments.

Bitcoin rose by 2.39% to $97,414 as it continues to rebound toward last week’s record high of $99,830. It is on track for a 39% monthly gain, driven by optimism about a potentially favorable regulatory environment under the new U.S. administration.