The yen briefly breached the key level of 150 against the dollar as traders positioned for a stronger likelihood of the Bank of Japan raising interest rates in December while the Federal Reserve cuts US borrowing costs.

The yen surged to a six-week high against the U.S. dollar following unexpectedly fast inflation in Tokyo, prompting speculation of a Bank of Japan rate hike. Meanwhile, the dollar weakened against most major currencies amid low trading activity due to the U.

The yen jumped as much as 1% to a six-week high at 150 per dollar on Friday, after faster than expected inflation in Tokyo supported bets for a Bank of Japan interest rate hike next month. The dollar sagged against most major peers in trading thinned by the U.