Investing.com – Most Asian currencies were flat on Wednesday, while the dollar stabilized near recent highs as attention turned directly to upcoming U.S. inflation data, which is expected to provide more information on interest rates.

The dollar rose sharply over the past week while most Asian units weakened following Donald Trump’s victory in the 2024 presidential election. The impact of a second Trump presidency on Asia remained uncertain.

Traders were also seen advocating for more stimulus measures from China after the country’s latest round of fiscal measures fell miniature.

The dollar hit a 4-month high with CPI data in the Fed’s spotlight

Asian trade stabilized after falling slightly from a four-month high in the previous session.

Traders started gaining on the dollar on bets that Trump would implement more expansionary policies, which could boost inflation in the coming years.

However, that trading stalled on Wednesday, with attention shifting to key upcoming data later in the day. The reading is expected to show that inflation remained unchanged in October.

The October CPI reading also comes after Minneapolis Fed President Neel Kashkari warned on Tuesday that any boost in inflation could prompt the Fed to maintain interest rates.

His comments led investors to lower bets in December based on a 25-basis-point cut, pricing in a 64.2% chance of a cut, down from yesterday’s 66.7% chance of a cut, according to .

More Fed officials will speak this week, especially on Thursday.

Asia FX has gone tranquil amid uncertainty in the U.S. and anxiety in China

Most Asian currencies were little changed on Wednesday, decelerating from keen losses in recent sessions as investors remained highly risk averse.

China’s disappointing fiscal measures also dampened sentiment in the region after Beijing failed to unveil any targeted measures to support private spending and the real estate market.

The yuan pair fell 0.1% on Wednesday after hitting a three-month high this week.

The Japanese yen weakened further this week, with the pair rising to almost 155 yen on Tuesday. Uncertainty over Japan’s political and monetary policy outlook also weakened the yen on bets that the gap between U.S. and local interest rates will persist longer under Trump.

The Australian dollar pair was unchanged on Wednesday, as was the South Korean won pair.

The Indian rupee pair hovered near record highs of 84.5 rupees, receiving little support from data that showed Indian CPI inflation rose much more than expected in October.