TOKYO: The yen sank further in Asia Friday as speculation of more Bank of Japan monetary easing weighed on the unit, while upbeat US data supported the dollar.
The greenback was at five-year highs in Tokyo morning trade, buying 104.85 yen against 104.82 yen in New York Thursday.
The US unit briefly topped the 105 yen level Friday, after US weekly jobless claims fell more than expected -- offering more evidence of a firming US economy.
"It is very likely we will see a speedy ride toward 105.60 yen or even higher," a senior dealer at a major bank in Tokyo told Dow Jones Newswires.
The euro also jumped past five-year highs to 143.81 yen from 143.51 yen in US trade while it fetched $1.3715 from $1.3692.
The yen has been in retreat for most of this year as the BoJ's aggressive easing programme held down the unit, while the US Federal Reserve's decision last week to start scaling back its own bond-buying programme in January gave the dollar a lift.
The pullback on Fed asset purchases means fewer dollars in the financial system, boosting demand for the greenback.
While the BoJ last week held off fresh policy measures, its chief Haruhiko Kuroda met with Prime Minister Shinzo Abe Thursday as speculation of more easing mounts after Japan's third-quarter growth slowed markedly.
In upbeat news, consumer price data published Friday showed that Japan's war on deflation got a boost last month with a key inflation indicator rising at its fastest pace in 15 years.
Reversing years of falling prices is the centrepiece of Abe's bid to kickstart the world's third-largest economy.
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