The yen gained slightly after hitting lows last seen in February, with the USD/JPY pair ticking down 0.2 per cent

Most Asian currencies edged lower on Tuesday as uncertainty over a U.S. interest-rate cut next month eclipsed risk appetite, while the yen hovered near nine-month lows amid heightened fiscal concerns in Tokyo.

The US Dollar Index, which measures the dollar against a basket of major currencies, ticked down 0.1 per cent. US Dollar Index Futures also traded 0.1 per cent lower as of 04:27 GMT.

The yen gained slightly after hitting lows last seen in February, with the USD/JPY pair ticking down 0.2 per cent.

Long-term Japanese government bond yields jumped to multi-decade highs, with the 20-year yield hitting record highs.

Investors have grown increasingly concerned that new fiscal measures under Prime Minister Sanae Takaichi’s administration could add to Japan’s already heavy debt load.

Takaichi is reportedly preparing to unveil her first economic package as early as this week. A Reuters report stated that Goushi Kataoka, a private-sector member of a key government panel, said Japan needs a stimulus package of about $149 billion to bolster the economy.

Reports have also suggested the plan may include tax cuts aimed at boosting investment and consumption. Finance Minister Satsuki Katayama on Tuesday expressed concern over recent foreign exchange movements, saying the government was watching the market with a heightened sense of urgency.

The won’s USD/KRW rose 0.3 per cent while the Singapore dollar’s USD/SGD traded flat.

The Australian dollar’s AUD/USD pair fell 0.4 per cent on Tuesday.

The yuan’s onshore USD/CNY and offshore pair USD/CNH ticked 0.1 per cent higher each.

The Indian rupee’s USD/INR pair was largely muted.