Investing.com– Most Asian currencies moved in a modest range Monday (NASDAQ:) as investors were displeased with greater fiscal spending in China, while the dollar strengthened ahead of this week’s key consumer inflation data.

Regional currencies have suffered piercing losses in recent sessions as the dollar strengthened sharply following Donald Trump’s victory in the 2024 presidential election. While the dollar’s rise was halted by the Federal Reserve’s interest rate cut, it still retained most of its recent gains.

The Japanese yen and Chinese yuan were among the hardest hit, while broader Asian currencies also mostly saw recession.

Both indicators rose slightly in Asian trade, focusing on October data due later in the week. Many Federal Reserve officials will also speak this week, after the bank cut interest rates by 25 basis points last week.

China’s yuan weakens amid weakening stimulus

The Chinese yuan pair rose 0.1%, remaining near three-month highs, after the National People’s Congress outlined plans for greater fiscal spending.

Last week, the NPC approved a 10 trillion ($1.4 trillion) debt package aimed at reducing local government debt levels. However, this solution disappointed investors hoping for more targeted fiscal measures.

Beijing has indeed signaled that more stimulus is coming, but has not set a timeline for planned actions. Analysts from ANZ say China is likely to hold off on introducing stimulus measures until it is clear what the U.S. position towards the country will be after Trump takes office.

Trump announced the imposition of high import tariffs on China, which bodes ill for an economy that is already struggling with slowing growth.

Data released over the weekend showed the Chinese slowed while shrinking for the 25th straight month in October.

ANZ analysts said they are currently awaiting high-level political meetings in China in December for more information on stimulus measures. Markets are anticipating actions aimed at stimulating private consumption and the crisis on the real estate market.

Japanese yen weakens amid BOJ uncertainty

The Japanese yen weakened on Monday, with the pair rising 0.5% and remaining near recent three-month highs.

A summary of views from the Bank of Japan’s October meeting showed policymakers were divided on further interest rate increases, creating greater uncertainty about when the BOJ will raise interest rates further.

The uncertainty bodes ill for the yen, which was already weakened by increased political uncertainty in Japan after the country’s ruling Liberal Democratic Party lost its parliamentary majority last month.

Broader Asian currencies remained in a narrow range after recording recent losses against the mighty dollar.

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

The Australian dollar pair rose 0.2% while the Indian rupee pair remained near record highs of 84.4 rupees.