(Updated to midmorning New York time)

By Karen Brettell and Harry Robertson

NEW YORK, Nov 29 (Reuters) - The yen jumped to a

six-week high against the dollar on Friday after

faster-than-expected inflation in Tokyo supported bets for a

Bank of Japan interest rate hike next month.

Tokyo's core consumer price index, which excludes volatile

fresh food costs, rose 2.2% year-on-year in November from a year

earlier, up from 1.8% last month and beating forecasts for a

2.1% gain.

"The yen is turning into the latest momentum trade ... with

little friction to prevent it rising in thin holiday trade,"

said Matt Simpson, senior market analyst at City Index.

Trading volumes declined heading into the U.S. Thanksgiving

holiday on Thursday, with many traders still out on Friday.

The dollar was last down 1.04% at 149.97 yen, and

earlier dipped to 149.53 yen for the first time since Oct. 21.

It is set for a 2.1% weekly loss against the Japanese currency,

the largest since September.

The dollar index was last down 0.04% at 106.03, after

earlier reaching 105.61, the lowest since Nov. 12.

It is on track for a 2% rise in November as investors adjust

for the likelihood that the new U.S. administration under Donald

Trump next year will loosen business regulations and enact other

policies that boost growth.

Analysts also say that proposed new tariffs and a promised

clampdown on illegal immigration could reignite inflation.

Stronger-than-expected economic data has also boosted bets

that the Federal Reserve will slow its pace of interest rate

cuts as it approaches the neutral rate.

Traders are pricing in 66% odds for a 25 basis point cut at

the Fed's Dec. 17-18 meeting, but only a 17% chance of an

additional reduction in January, according to the CME Group's

FedWatch Tool.

The euro fell 0.05% to $1.0548. The single

currency has tumbled about 3% in November as the dollar has

rallied, putting it on course for its worst month since April

2022.

Data on Friday showed that French consumer prices grew in

line with expectations in November. Germany's inflation report

on Thursday showed price pressures remaining flat in November

despite expectations of a second consecutive increase.

ECB policymaker Francois Villeroy de Galhau said on Thursday

that the central bank should keep its options open for a bigger

rate cut next month, countering hawkish comments from peer

Isabel Schnabel the previous day.

Bitcoin climbed 3.13% to $98,111, trying to claw its

way back to the record high of $99,830 from a week ago.

This month, the leading cryptocurrency is set to book a 40%

jump - its best performance since February - on bets for a more

favourable regulatory environment under Trump.