Investor bets on BOJ rate hikes intensified after September moves, supporting demand for Japanese bonds even as the yen traded weaker in some sessions.

The yen firmed modestly as Tokyo CPI came in hotter than expected, with core inflation staying above the BOJ’s 2% target, reinforcing expectations for further BOJ tightening.

Chinese markets were quiet on a market holiday, leading to thinner volumes and muted price action in regional currencies.

The U.S. dollar held steady ahead of the September payrolls data, as traders parse clues on the Fed’s path and potential rate expectations.

Oil surged on talk of limited progress toward a U.S.-Iran peace deal and possible future strikes, signaling risk for risk assets and commodity-linked currencies.

Fed officials reiterated that higher rates may be needed to tame inflation, underpinning a dollar bid and a higher-for-longer stance.

Across Asia, most currencies were flat or mixed: the won slipped on softer inflation, the rupee weakened toward multi-year lows on high oil costs, the Aussie and SGD were broadly flat, and the offshore yuan softened ahead of China’s market holiday.