The euro rose against the US dollar on Friday after strong euro zone inflation figures, while the dollar jumped against the yen after US wages data suggested the Federal Reserve would still hike interest rates two more times this year. Official flash estimates put euro zone inflation at 1.9 percent in the first quarter, on the verge of crossing over the European Central Bank's target of below but close to 2 percent, and above estimates for a rise of 1.8 percent.

According to standard EU measures, in Italy it was 2 percent. That helped drive the euro as high as $1.0947, just below a 5-1/2-month high of $1.0950 struck earlier in the week. Analysts said the latest inflation figures could prompt the ECB to take a more hawkish bent in its June statements by either upgrading its assessment of the European economy or suggesting less need for stimulus. The dollar rose as much as 0.4 percent against the yen to a session high of 111.71 yen, just below a nearly four-week high of 111.77 touched April 26, after US Labour Department data showed private wages and salaries accelerated 0.9 percent in the first quarter. That marked the largest increase in 10 years.

The dollar was last up 0.2 percent against the yen at 111.51 yen. The dollar index, which measures the greenback against a basket of six major rivals, was last mostly flat at 99.102. The greenback hit C$1.3697, its highest level against the Canadian dollar since late February 2016, on lingering concern over US President Donald Trump's dissatisfaction with the North American Free Trade Agreement (NAFTA), a US, Mexico and Canada trade pact.

Copyright Reuters, 2017