The yen fell to a two-month low
against the dollar and a one-year low versus the New Zealand
dollar as economic data on Tuesday failed to dispel doubts about
the chances of the Bank of Japan raising interest rates in
January.
Japan's core consumer price index rose 0.2 percent in
November from a year earlier, in line with market expectations,
while all-households spending fell 0.7 percent in November,
smaller than the expected decline of 1.3 percent.
"The household spending data was better than expected. But
if you ask whether that means there is a 'go' sign for a Bank of
Japan rate rise in January, I don't think that is the case," a
Japanese trust bank trader said.
"I think the sense in the market is that a rate rise in
January is still a bit difficult," he said.
The latest economic reports kept investors thinking that the
BOJ may not see enough data to justify a rate increase before
its two-day policy meeting on Jan. 17-18, traders said.
