The Japanese Yen had rose versus all its major peers as discussions between US President Barack Obama and the House Republicans had hit a stalemate, said a report from Reuters. This was even as US senators from both parties had negotiated to avert a debt default.
For the first time in five days, the Yen had advanced versus the US dollar. This was after Obama reiterated he would negotiate on the budget after the US debt cap is raised and the shutdown had been ended.
The borrowing authority of the United States would lapse on October 17. This was according to the US Treasury Department.
According to currency strategist Mike Jones of Bank of New Zealand Ltd, "The yen's safe-haven appeal is still very strong, and that's benefited from being removed from U.S. fiscal shenanigans. A lower dollar-yen is the way to play this if you think we're going to border on a U.S. default."
As of 8:13 a.m. in Tokyo, the Yen rose 0.3% to JPY98.30 per USD1.
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