Most Asian currencies traded in a narrow range on Monday, while the Japanese yen found modest support from renewed government intervention warnings. The currency gained ground after Finance Minister Satsuki Katayama signaled she was coordinating closely with U.S. Treasury officials for potential joint market operations to support the battered currency. USD/JPY slipped 0.2% to 156.87.

Prime Minister Sanae Takaichi secured a sweeping lower house election victory on Sunday, giving her ruling coalition a commanding supermajority. The electoral mandate clears a legislative path for aggressive fiscal spending plans that have unsettled currency markets. Investors fear expanded government expenditure will further strain Japan's already stretched public finances—concerns that triggered a sharp selloff in Japanese government bonds earlier this year.

Broader regional currencies remained under pressure as the dollar index retreated slightly from recent highs near 98 points. Market attention now shifts to key U.S. economic releases, with producer price data due Wednesday and consumer inflation figures expected Friday. These readings will shape expectations for Federal Reserve policy under Kevin Warsh, President Trump's nominee for Fed chairman. The Chinese yuan held near mid-2023 lows despite central bank support.

Quick Fact: USD/JPY fell 0.2% to 156.87 yen in Monday trading.