Investing.com – Most Asian currencies fell slightly on Tuesday, extending recent losses as investors remained risk averse ahead of a series of key economic readings this week.

The Japanese yen was an outlier and strengthened slightly after hitting a nearly three-month low in the previous session amid heightened political uncertainty at home. There will also be a meeting of the Bank of Japan this week.

Regional currencies were under pressure from a robust dollar as the dollar built on recent gains ahead of a series of economic readings this week that are likely to include interest rate expectations. Concern over the upcoming presidential election also kept investors trending toward the dollar.

The Japanese yen remains stable amid intervention threats

The Japanese yen pair fell 0.2% on Tuesday, rebounding slightly from nearly three-month highs, after Finance Minister Katsunobu Kato said authorities were monitoring currency market volatility.

His statement came after a acute weakening of the yen following the results of the general elections held on Sunday, in which the ruling coalition led by the LDP lost its majority.

The election results heralded an raise in political uncertainty in the country, which may make it arduous for the BoJ to further raise interest rates. This is widely expected to happen on Thursday.

This opinion weakened the yen even before Sunday’s elections, and the currency recorded significant losses in October.

Dollar stable thanks to economic data, elections in focus

There was little change in Asian trade, remaining near three-month highs seen in recent sessions.

The dollar posted robust gains in October as a series of positive economic data raised concerns that the Fed would cut interest rates at a slower pace in the coming months.

Economic readings released this week will provide more guidance in this regard. Third-quarter data will be released on Thursday, followed by data – the Fed’s preferred inflation gauge – and data – both on Friday.

The dollar’s position also increased amid increased bets that Donald Trump will defeat Kamala Harris in the upcoming presidential election, which is scheduled for November 5. Trump’s policies are expected to be protectionist and inflationary, providing a brighter outlook for the dollar.

Most Asian currencies have withdrawn from this concept, and investors are now expecting more economic signals from the region this week.

The Australian dollar pair fell 0.2% ahead of the quarterly data release on Wednesday.

The Chinese yuan pair rose 0.2% ahead of the October data release. The reading is expected to reflect some impact from a number of stimulus measures announced by Beijing over the past month.

The South Korean won pair rose 0.4%, while the Singapore dollar pair rose 0.2%.

The Indian rupee pair was flat but remained close to recent record highs.