The Japanese yen traded near the psychologically significant 160-per-dollar level on Friday after coming under sustained selling pressure throughout the week, prompting authorities to issue fresh warnings of potential currency market intervention. Finance Minister Satsuki Katayama stated that Japanese officials would maintain close coordination with their US counterparts and take appropriate measures if necessary to address excessive and rapid movements in the foreign exchange market. Japan’s top currency diplomat, Atsushi Mimura, also warned investors not to disregard the events of last summer, when Japanese and US authorities jointly intervened in the FX market to support the yen. The currency’s latest decline was largely driven by broad-based US dollar strength amid growing expectations of more aggressive Federal Reserve rate hikes, following stronger-than-expected US inflation data and increasingly hawkish remarks from Fed officials.

Gold prices recovered above $3,900 per ounce on Friday after declining for three consecutive sessions, but remained on track for a sharp weekly loss as a stronger US dollar and rising Treasury yields reflected growing expectations of more aggressive Federal Reserve rate hikes. The shift in market sentiment followed hotter-than-expected US consumer inflation data and hawkish comments from Fed officials, with some policymakers suggesting that a larger 50-basis-point rate increase may be necessary to contain inflation. Markets are currently pricing in around an 85% probability of a 25 bps rate hike in December, as well as a 15% chance of a larger 50 bps increase. Traders are also increasingly anticipating additional rate hikes next year. Meanwhile, gold faced further downward pressure from recovering oil prices after President Donald Trump stated that the US no longer needs a deal with Iran.

The Nikkei 225 Index climbed 1.5% to above 61,700 on Friday, posting gains in four of the past five sessions and putting the index up more than 7% for the week, its strongest weekly performance since June. Japanese equities recovered from Thursday’s losses as investors reassessed the broader implications of Nvidia’s leadership changes for the artificial intelligence sector. Nvidia CEO Jensen Huang stepped down following reports of extramarital affairs, with CFO Colette Kress assuming the role of interim CEO. Meanwhile, market participants are anticipating Anthropic’s highly awaited IPO next week, which has attracted orders equivalent to roughly six times the shares available, highlighting strong investor demand for the AI company. Technology and AI-related stocks led the market rebound, including Kioxia Holdings (2.8%), Advantest (6.4%), Tokyo Electron (2.9%), Lasertec (2.9%) and Ibiden Co (2.5%).

Crude oil prices hovered above $88 per barrel on Friday after rising in the previous session, as President Donald Trump stated that the US no longer needs a deal with Iran, dampening hopes for a diplomatic resolution to the war. Trump also directed Vice President JD Vance to prioritize domestic matters over negotiations with Tehran. Meanwhile, Iran maintained its position that Washington must lift its naval blockade and sanctions against the country before any direct peace talks can take place. Mohsen Rezaee, secretary of Iran's Supreme National Security Council, further emphasized that Tehran has no intention of removing its enriched nuclear materials from the country. Despite these developments, oil prices remain on track for a second consecutive weekly decline as Middle Eastern crude exports continue to recover. Hopes for a faster resolution to the conflict have also been supported by a Democratic victory in the US midterm elections.

Peru’s Central Reserve Bank (BCRP) raised its benchmark interest rate by 25 bps to 4.50% in November 2026, marking its first hike in nearly four years, in line with expectations. The move reflected supply shocks, higher inflation expectations and strong domestic demand. Annual inflation accelerated to 5.3% in October from 4.5% in September, mainly due to higher food and energy prices. Inflation excluding food and energy rose to 4.6% from 4.5%, while the measure excluding food, energy and transportation stood at 2.0%, within the 1%-3% target range. Twelve-month inflation expectations remained at 3.1%, above the target ceiling. The BCRP expects inflation to return to target and converge toward 2% as supply shocks fade, but warned that El Niño and Middle East tensions could prolong price pressures. Activity indicators remained robust in October, while business expectations slowed but stayed optimistic. The bank said the hike does not necessarily mark a tightening cycle.

New Zealand’s BusinessNZ Performance of Manufacturing Index eased to 54.9 in October 2026 from 56.3 in September, marking a 16-month streak of expansion. Respondents cited fuel prices, the cost of living, and election uncertainty as concerns, though many pointed to the Christmas build-up and steady orders as positive factors. Employment was the weakest sub-index at 51.9, though still expanding, while Deliveries (61.4) and Finished Stocks (58.0) were the strongest. New Orders (54.3) and Production (53.9) eased from the previous month but remained comfortably in expansion. The Christmas build-up and steady infrastructure work suggest manufacturers are ending the year on a solid footing, even as input prices and the cost of living continue to weigh on the sector.