The Japanese yen lost ground against other major currencies in the Asian morning session on Friday, as weak CPI and industrial production data added speculation that the authorities will pursue drastic stimulus measures to prop up the economy.
Industrial output in Japan fell a seasonally adjusted 1.7 percent on month in November, the Ministry of Economy, Trade and Industry said in Friday's preliminary reading.
That was well below forecasts for a decline of 0.5 percent following the 1.6 percent increase in October.
On a yearly basis, industrial production dropped 5.8 percent - also missing forecasts for a fall of 4.6 percent after losing 4.5 percent in the previous month.
A separate report showed that core consumer prices in Japan were down 0.1 percent on an annual basis in November - matching forecasts following the flat reading in October.
Overall nationwide consumer prices were down 0.2 percent on year, also in line with forecasts following the 0.4 percent decline in the previous month. On a monthly basis, core CPI was down 0.3 percent and overall inflation dipped 0.4 percent.
Meanwhile, the unemployment rate in Japan was a seasonally adjusted 4.1 percent in November. That beat forecasts for 4.2 percent, which would have been unchanged from the previous month.
The yen dipped to 86.64 against the U.S. dollar for the first time since August 2010. The yen thus lost 0.61 percent from yesterday's close of 86.11. The yen is likely to seek next support level at 87.5.
Against the franc, the yen touched near a 16-month low of 94.93, down 0.67 percent from Thursday's close of 94.30. On the downside, 96.00 is seen as the next target level for the yen.
The yen fell to a 17-1/2-month low of 114.72 against the euro with 115.5 likely to target as next downside target level. The pair closed yesterday's deals at 114.00.
Against the pound, the yen declined to more than a 20-month low of 139.58, compared to Thursday's close of 138.67. If the yen extends fall, it is likely to break 142.00 level.
The yen slipped to 89.84 against the Australian dollar, its lowest level since April 2011. The next downside target level for the yen is seen at 91.5. At Thursday's close, the pair was quoted at 89.34.
The yen that closed yesterday's deals at 86.52 against the Canadian dollar hit a 20-month low of 87.09. The yen may seek next downside target level at 87.5.
Against the NZ dollar, the yen slipped to an 11-day low of 71.16 and the next downside target level for the yen is seen at 72.00. The pair closed Thursday's New York session at 70.68.
In the European session, French final GDP data for the third quarter is due.
The U.S. pending home sales data for November is expected in the early New York session.
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