Tokyo: The yen weakened in Asia on Friday after a slate of tepid Japanese data that has dealt another blow to the government`s plans to end years of deflation.
In Tokyo, the greenback rose to 118.31 yen from 117.74 yen in London, while the euro strengthened to 147.25 yen from 146.88 yen in European trade. US markets were closed Thursday for the Thanksgiving holiday.
The European single currency slipped to $1.2446 from $1.2474 on speculation over fresh easing moves by the European Central Bank (ECB).
Japan published lacklustre economic data Friday with October inflation hitting a more than one-year low and household spending falling again.
The weak consumer price reading makes the Bank of Japan`s 2.0 percent inflation target -- which it initially aimed to hit in 2015 -- look increasingly out of reach.
The BoJ shocked markets last month by saying it would expand its asset-buying stimulus programme to about 80 trillion yen annually, in a bid to overcome years of deflation and kickstart the economy.
"Even despite the BoJ`s surprise move, we maintain our view that there is a very long way to go before achieving the +2.0 percent target," Credit Agricole said.
The euro was mixed after dipping Thursday on signals by a senior European Central Bank official that it could begin major purchases of government bonds of eurozone countries as it tries to kickstart the sluggish economy.
The ECB`s deputy president Vitor Constancio signalled Wednesday it could begin purchasing government bonds as soon as next year.
Meanwhile European Central Bank chief Mario Draghi called for an "adjustment of wages" in the eurozone to strengthen the viability of the single currency.
Cutting wages has been a key element in the international bailouts of eurozone members, as lowering salaries is one of the only options to increase competitiveness left open to euro countries as they can no longer devalue their currencies.
"Disappointing inflation data from Germany and Spain do not bode well for today`s eurozone inflation figure," Credit Agricole said.
"Weak eurozone inflation print along with the decision by OPEC to keep the current level of production, (are) adding to the existing disinflationary pressure, (which) will increase the likelihood of more ECB easing next year," it added.
