Investing.com – Most Asian currencies were flat on Monday as investors digested moderate signals from China on fiscal stimulus plans, while the yuan weakened on weaker-than-expected inflation data.

The dollar strengthened slightly, focusing on multiple Federal Reserve speakers this week for more information on interest rates. The dollar built on last week’s gains amid expectations of a slower pace of interest rate cuts.

In Asian trade, prices and increased by 0.1%.

Regional trading volumes were held back by the holiday in Japan, while the yen weakened slightly amid continuing doubts about the Bank of Japan’s ability to raise interest rates further. The pair was back in sight for 150 yen.

Chinese yuan weakened by tender inflation, moderate stimulus

The Chinese yuan weakened slightly on Monday, with the pair rising 0.1%.

The currency was weakened mainly by data showing that Chinese deflation remains in play. in September it rose less than expected, although it was the 23rd consecutive month of decline.

Mixed signals regarding fiscal stimulus also worsened sentiment towards China.

The finance ministry said at a weekend briefing that it plans to provide fiscal support, including more debt issuance and aid to provincial governments.

However, the briefing omitted key details about the planned measures, in particular their scope and timing, which raised circumscribed optimism for more stimulus.

In behind schedule September, Beijing announced a series of significant monetary stimulus measures intended to facilitate sustain sluggish economic growth. While initial sentiment around the recent measures was positive, the lack of clear details on their implementation dampened overall optimism.

Indian rupee near record lows amid persistent inflation

Among other Asian currencies, the Indian rupee hovered near record lows after the Reserve Bank of India announced a shift from its hawkish policy at its meeting last week.

The rupee pair fell 0.1% after briefly touching a record high of 84,205 rupees.

Attention now turns to India and inflation readings due later in the day. Consumer inflation is expected to rise sharply in September due to food prices.

Broader Asian currencies have been muted. The Australian dollar pair fell 0.1%, while the South Korean won pair rose 0.5%.

The Singapore dollar pair rose 0.1% after Singapore’s monetary authority left policy unchanged. Gross domestic product data showed the island nation’s economy grew sharply in the third quarter, albeit on a lower base of comparison.