ForexLive Asia-Pacific FX news wrap: Tokyo inflation gets hotter | Forexlive

Tokyo’s
inflation sped
to its fastest
pace since 1982. The
Tokyo data is used as indicative of national level inflation, which
appears likely to also rise in November. Japanese Government Bonds
came under pressure on the data, the yield on 10-year JGBs rose to
near the top of the Bank of Japan target band. The response of the
yen, however, was to weaken. Not by much, the range has been from
lows around 138.45 to a high just over 139.00. As I update USD/JPY
has dropped back to more or less the middle of its range. Despite
rising inflation the Bank of Japan have been adamant in insisting its
transitory, driven by cost-push factors that will dissipate.

Elsewhere
across major FX rates ranges have been subdued, interest has been
sapped by the US Thanksgiving holiday Thursday that’ll,
unofficially, stretch into Friday and thus a four-day weekend.

Speculation
of an RRR cut from the People’s Bank of China intensified. New COVID cases in the country rose to a fresh record high.