Investing.com - The U.S. dollar slumped against the Japanese yen during Monday’s Asian session as the Japanese currency was bolstered by safe-haven demand stemming from the ongoing U.S. government shutdown.
In Asian trading Monday, USD/JPY fell 0,30% to 97.17. The pair is likely to find support at 96.11, the low of August 9 and resistance at 98.07, Wednesday’s high. The yen gained 0.93% last week against the greenback.
The U.S. is in the midst of its first government shutdown since the 1990s and with political environment in Washington, D.C. hostile at best, some traders are betting a resolution to the shutdown is not imminent.
Markets were also mulling over how the political deadlock in Washington will impact on negotiations to raise the U.S. debt ceiling, which the U.S. Treasury Department has estimated will be reached by October 17.
The shutdown prevented the release of September’s non-farm payrolls report last Friday and speculation is increasing that if the shutdown runs into the debt-ceiling deadline, the U.S. could see its sovereign credit rating lowered.
Last week, Bank of Japan Governor Haruhiko Kuroda warned that the U.S. budget deadlock and fears over the threat of a possible U.S. default could destabilize financial markets
Treasury Secretary Jacob J. Lew said Congress is "playing with fire" with regard to not extending the debt ceiling. The U.S., which no longer has an AAA sovereign debt rating, has never defaulted on its debt obligations.
The Obama administration has said it won’t negotiate with Republicans over funding the government or raising the debt ceiling, arguing that it is part of the basic functions of Congress and shouldn’t be used as a point of leverage, Bloomberg reported.
Elsewhere, EUR/JPY lost 0.23% to 131.81 while NZD/JPY shed 0.53% to 80.67.
In Asian trading Monday, USD/JPY fell 0,30% to 97.17. The pair is likely to find support at 96.11, the low of August 9 and resistance at 98.07, Wednesday’s high. The yen gained 0.93% last week against the greenback.
The U.S. is in the midst of its first government shutdown since the 1990s and with political environment in Washington, D.C. hostile at best, some traders are betting a resolution to the shutdown is not imminent.
Markets were also mulling over how the political deadlock in Washington will impact on negotiations to raise the U.S. debt ceiling, which the U.S. Treasury Department has estimated will be reached by October 17.
The shutdown prevented the release of September’s non-farm payrolls report last Friday and speculation is increasing that if the shutdown runs into the debt-ceiling deadline, the U.S. could see its sovereign credit rating lowered.
Last week, Bank of Japan Governor Haruhiko Kuroda warned that the U.S. budget deadlock and fears over the threat of a possible U.S. default could destabilize financial markets
Treasury Secretary Jacob J. Lew said Congress is "playing with fire" with regard to not extending the debt ceiling. The U.S., which no longer has an AAA sovereign debt rating, has never defaulted on its debt obligations.
The Obama administration has said it won’t negotiate with Republicans over funding the government or raising the debt ceiling, arguing that it is part of the basic functions of Congress and shouldn’t be used as a point of leverage, Bloomberg reported.
Elsewhere, EUR/JPY lost 0.23% to 131.81 while NZD/JPY shed 0.53% to 80.67.