Investing.com - The U.S. dollar traded higher against the Japanese yen during Tuesday’s Asian session after some disappointing current account data out of Japan.
In Asian trading Tuesday, USD/JPY rose 0.09% to 96.80. The pair was likely to fin support at 96.65 and resistance at 98.72, Tuesday's high.
Earlier Tuesday, Ministry of Finance data showed Japan’s current account surplus plunged 63.7% on a year-over-year basis. The surplus was JPY161.5 billion, well below estimates calling for a surplus of JPY540.9 billion. Economists expected Japan’s current account surplus to rise 23.4%. The surplus was the lowest for any August since at least 1985, Bloomberg reported.
Amid weakness in emerging Asian currencies, investors have prized currencies hailing from nations with current account surpluses. The yen has also been boosted in recent days due to its status as a safe-haven alternative to the dollar.
An impasse among U.S. lawmakers and the White House over terms needed to create a spending package and reopen the government sent investors avoiding the dollar on Monday.
Market participants are growing increasingly worried that the Congressional stalemate risks going through October 17, the day Congress must raise the U.S. debt ceiling. The U.S. has never failed to raise the debt ceiling and by not doing so, risks the first ever default on its sovereign debt obligations. Moody’s Investors Service has said a U.S. default is unlikely.
Republican leadership is demanding the White House get tough on spending cuts, President Obama and Senate Democrats appear no more in the mood for compromise than their Republican counterparts.
Elsewhere, EUR/JPY inched up 0.03% to 131.35 while AUD/JPY nudged up by 0.01% to 91.20.
In Asian trading Tuesday, USD/JPY rose 0.09% to 96.80. The pair was likely to fin support at 96.65 and resistance at 98.72, Tuesday's high.
Earlier Tuesday, Ministry of Finance data showed Japan’s current account surplus plunged 63.7% on a year-over-year basis. The surplus was JPY161.5 billion, well below estimates calling for a surplus of JPY540.9 billion. Economists expected Japan’s current account surplus to rise 23.4%. The surplus was the lowest for any August since at least 1985, Bloomberg reported.
Amid weakness in emerging Asian currencies, investors have prized currencies hailing from nations with current account surpluses. The yen has also been boosted in recent days due to its status as a safe-haven alternative to the dollar.
An impasse among U.S. lawmakers and the White House over terms needed to create a spending package and reopen the government sent investors avoiding the dollar on Monday.
Market participants are growing increasingly worried that the Congressional stalemate risks going through October 17, the day Congress must raise the U.S. debt ceiling. The U.S. has never failed to raise the debt ceiling and by not doing so, risks the first ever default on its sovereign debt obligations. Moody’s Investors Service has said a U.S. default is unlikely.
Republican leadership is demanding the White House get tough on spending cuts, President Obama and Senate Democrats appear no more in the mood for compromise than their Republican counterparts.
Elsewhere, EUR/JPY inched up 0.03% to 131.35 while AUD/JPY nudged up by 0.01% to 91.20.