Published On: Sun, Dec 8th, 2013
Published in Category: Uncategorized

Dollar stays weak on US budget woes

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TOKYO: The dollar stayed weak against the safe-haven yen in Asia on Tuesday as market players grew jittery over the US budget impasse.

The greenback was quoted at 96.74 yen in Tokyo morning trade, a shade higher than 96.68 yen in New York Monday afternoon but down from the 97-yen range in Tokyo Monday.

The euro slipped to $1.3569 from $1.3579 in US trade and to 131.26 yen from 131.30 yen.

Stock markets globally lost ground Monday with no sign of a resolution to a US standoff over raising the government debt ceiling ahead of the October 17 deadline.

If the government loses its borrowing authority on October 17, it could default on its debts for the first time in history.

Democratic and Republican leaders gave no ground on Monday as the partial US government shutdown edged into its second week.

“With the debt ceiling set to be breached in just 10 days’ time, market nervousness is rising,” National Australia Bank said in a note.

“The JPY (Japanese yen) stands to benefit the most from the US fiscal issues, due to its strong safe-haven characteristics and dissociation from the US budget troubles,” it said.

The dollar got a bit of breathing space against the yen right after Japanese government data released early Tuesday showed the nation’s current account surplus was a sharply lower-than-expected 161.5 billion yen ($1.67 billion) in August.

But the rise was too modest to reverse the greenback’s downtrend. (AFP)

 

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