Dollar on the Rise: Markets Disappointed with China's Stimulus

The week in Asia begins with a stable rise of the US Dollar, while low liquidity due to a holiday in Japan and mixed stimulus announcements from China draw market attention. The Euro fell slightly by 0.13% to $1.0922, and the British Pound recorded a decline of nearly 0.2% to $1.3043, while the Dollar remained unchanged against the Japanese Yen at 149.20. The Dollar Index rose slightly to 103.10, nearing last week's peak which had not been reached since mid-August. This was due to traders' reluctance to expect further drastic interest rate cuts by the Federal Reserve this year. The Chinese currency, the Yuan, lost over 0.2% against the Dollar ahead of the domestic market, while the Australian Dollar, closely linked to the Chinese economy, fell by 0.16% to $0.67385. Over the weekend, China announced it would significantly increase national debt to provide subsidies for low-income households and strengthen the real estate and banking sectors. However, specific details were lacking, which frustrated the markets. According to Richard Franulovich of Westpac, the presentation was disappointing, while Christopher Wong of OCBC in Singapore pointed out the urgency of more emphasized measures to regain market confidence. Despite a 16% rise in the CSI300 Index, investors remained skeptical about the sufficiency of support. While the Yen and the Euro each lost about 0.3% last week and the British Pound fell by 0.4%, the Dollar Index rose by 0.4%. Investors are now keenly watching the upcoming retail and labor market data from the US. In New Zealand, the Dollar fell by 0.15% following interest rate cuts by the central bank. In a quiet market environment with both Japanese and US stock markets closed for holidays, the Singaporean central bank maintained its monetary policy stance.