Investing.com– Most Asian currencies moved in a small range on Monday (NASDAQ:) as traders took little cheer from more fiscal spending in China, while the dollar steadied ahead of key consumer inflation data this week.

Regional currencies were nursing steep losses in recent sessions as the dollar firmed sharply on Donald Trump winning the 2024 presidential elections. While the greenback’s rally was stalled by an interest rate cut by the Federal Reserve, it still retained a bulk of its recent gains.

The Japanese yen and the Chinese yuan were among the worst hit by this trade, while broader Asian currencies also mostly retreated.

The and both rose slightly in Asian trade, with focus turning to data for October, due later in the week. A slew of Federal Reserve officials are also set to speak this week, after the bank cut interest rates by 25 basis points last week. 

Chinese yuan softens as stimulus underwhelms 

The Chinese yuan’s pair rose 0.1%, remaining close to three-month highs after China’s National People’s Congress outlined plans for more fiscal spending. 

The NPC approved a 10 trillion ($1.4 trillion) debt package last week, aimed at easing local government debt levels. But the measure disappointed investors hoping for more targeted, fiscal measures.

Beijing did signal that more stimulus was on the way, but did not specify the timing of the planned measures. Analysts at ANZ said China was likely holding back on stimulus until it was clear how U.S. policy would stand towards the country after Trump takes over as President. 

Trump has vowed to impose steep import tariffs against China, which bode poorly for the economy, which is already grappling with slowing growth.

Data released over the weekend showed Chinese slowed in October, while shrank for a 25th consecutive month.

ANZ analysts said they were now looking to high-level Chinese political meetings in December for more insight into stimulus measures. Markets are watching for measures aimed at boosting private consumption and the property market crisis. 

Japanese yen weakens amid BOJ uncertainty 

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

Summary of opinions of the Bank of Japan’s October meeting showed policymakers were split over more interest rate hikes, sparking more uncertainty over when the BOJ will raise interest rates further. 

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

Broader Asian currencies kept to a tight range after clocking recent losses against a strong dollar.

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

The Australian dollar’s pair added 0.2%, while the Indian rupee’s pair remained close to record highs around 84.4 rupees.