In Japan, the BOJ held rates at 1.25%, but its acknowledgment that underlying inflation has reached 2% strengthened expectations of another hike. One board member voted for an immediate increase, while renewed demand for Japanese bonds added support to the yen.

The US economy expanded by an annualized 3.4% in the third quarter, exceeding forecasts of 3.2%, while September PCE inflation reached 3.6% annually. Despite holding rates unchanged, the Federal Reserve faces persistent price pressures supported by resilient consumer spending. 

Brent crude approached four-year highs above $112 as concerns over renewed US strikes on Iran and continued tanker attacks in the Strait of Hormuz threatened energy supplies. Diplomatic contact between Washington and Tehran offers some prospect of progress, but military tensions continue to support prices. Regional oil exports have nevertheless recovered to near prewar levels, limiting the impact of shipping disruptions.

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