Asian currencies consolidated against the dollar on Monday, finding potential support from concerns over mounting national debt. The U.S. national debt surpassed $40 trillion for the first time, prompting analysts to warn of possible headwinds for the greenback. CBA Global Economic & Markets Research noted that worries about government debt sustainability could weigh on the USD throughout the week.

Adding to the sentiment, U.S. Treasury Secretary Scott Bessent raised expectations for a budget consolidation program due this week. However, CBA cautioned that even a modest consolidation effort might disappoint markets and ultimately weaken the dollar. Against the dollar, the Japanese yen traded little changed at 158.87, while the Singapore dollar remained flat at 1.2693.

The Australian dollar held steady at US$0.7168, according to LSEG data. ([EMAIL]).