Investing.com — Most Asian currencies were marginally lower on Monday, as traders digested moderate signals from China on its fiscal stimulus plans, while the yuan fell after weaker-than-expected inflation data.
The dollar rose slightly, with focus shifting to a slew of Federal Reserve spokesmen this week for further signals on interest rates. The dollar achieved gains last week amid bets on a slowdown in the pace of interest rate cuts.
They rose 0.1% each in Asian trading.
Regional trading volumes were affected by the holiday in Japan, while the yen fell slightly amid continuing doubts about the Bank of Japan’s ability to raise interest rates further. The pair returned to the 150 yen level.
The Chinese yuan was affected by weak inflation and moderate stimulus
The Chinese yuan fell slightly on Monday, with the pair rising 0.1%.
The currency was mainly damaged by data that showed that the Chinese deflation is still directly in play. It grew less than expected in September, while contracting for the 23rd consecutive month.
Sentiment towards China was also affected by mixed signals on fiscal stimulus.
The Finance Ministry said at a weekend news conference that it plans to provide financial support, including issuing more debt and aid to provincial governments.
But the briefing left out key details about the planned measures, specifically their scope and timing, sparking limited optimism about further stimulus.
In late September, Beijing announced a series of major monetary stimulus measures to help support slowing growth. While morale was initially high about the new measures, the lack of clear details about their implementation dampened overall optimism.
The Indian rupee is approaching record lows as inflation rates rise
Among other Asian currencies, the value of the Indian rupee rose near record lows, after the Reserve Bank of India announced a move away from its hawkish policy during a meeting last week.
The rupee pair fell 0.1% after briefly hitting a record high of Rs 84,205.
The focus is now on inflation and Indian inflation readings later in the day. Consumer inflation is expected to rise sharply in September due to food prices.
Broader Asian currencies were muted. The Australian dollar pair fell 0.1%, while the South Korean won pair rose 0.5%.
The Singapore dollar pair rose by 0.1% after the Monetary Authority of Singapore kept its policy unchanged. GDP data showed that the island nation’s economy grew sharply in the third quarter, albeit from a lower comparative base.
Comments are closed, but trackbacks and pingbacks are open.