Investing.com - The dollar rose against the yen on Thursday after Republicans in the U.S. House of Representatives offered to temporarily raise the U.S. debt ceiling and avoid defaults provided the White House engage in talks to end a fiscal impasse that has closed the U.S. government.
In U.S. trading on Thursday, USD/JPY was trading at 98.13, up 0.79%, up from a session low of 97.34 and off a high of 98.23.
The pair was likely to find support at 96.57, Monday's low, and resistance at 98.72, the high from Oct. 1.
In the U.S. earlier, House Speaker John Boehner said Republicans would offer a temporary increase in the debt ceiling in exchange for dialogue with President Barack Obama on budget and deficit issues.
The White House said it would consider the offer and was awaiting details.
Hopes that talks will lead to an end to the government shutdown and avoid defaults while opening the door to broader fiscal reforms down the road firmed the greenback.
U.S. Treasury Secretary Jack Lew reiterated Thursday that the U.S. will reach its debt ceiling on Oct. 17 and warned that the political crisis is starting to hurt the economy. The comments came during testimony to the Senate finance committee.
The dollar shrugged off a report by the Department of Labor showing that U.S. initial jobless claims rose to 374,000 last week, an increase of 66,000 from the previous week's unrevised figure of 308,000.
The number was high due to a computer glitch in California related to technology upgrades.
Meanwhile in Japan, the yen came under pressure as investors ditched safe-haven positions to go
long on equities despite hit-or-miss data.
Japan's Economic and Social Research Institute said that the country's core machinery orders rose 5.4% in September after coming in flat in August. Analysts expected a September increase of 2.0%.
In a separate report, the data revealed that the Japanese tertiary industry activity index rose by 0.7% last month after contracting 0.4% in August. Analysts expected the tertiary index to rise by 0.5% in September.
The yen was down against the pound and down against the euro, with GBP/JPY up 0.90% and trading at 156.75 and EUR/JPY trading up 0.83% at 132.76.
In U.S. trading on Thursday, USD/JPY was trading at 98.13, up 0.79%, up from a session low of 97.34 and off a high of 98.23.
The pair was likely to find support at 96.57, Monday's low, and resistance at 98.72, the high from Oct. 1.
In the U.S. earlier, House Speaker John Boehner said Republicans would offer a temporary increase in the debt ceiling in exchange for dialogue with President Barack Obama on budget and deficit issues.
The White House said it would consider the offer and was awaiting details.
Hopes that talks will lead to an end to the government shutdown and avoid defaults while opening the door to broader fiscal reforms down the road firmed the greenback.
U.S. Treasury Secretary Jack Lew reiterated Thursday that the U.S. will reach its debt ceiling on Oct. 17 and warned that the political crisis is starting to hurt the economy. The comments came during testimony to the Senate finance committee.
The dollar shrugged off a report by the Department of Labor showing that U.S. initial jobless claims rose to 374,000 last week, an increase of 66,000 from the previous week's unrevised figure of 308,000.
The number was high due to a computer glitch in California related to technology upgrades.
Meanwhile in Japan, the yen came under pressure as investors ditched safe-haven positions to go
long on equities despite hit-or-miss data.
Japan's Economic and Social Research Institute said that the country's core machinery orders rose 5.4% in September after coming in flat in August. Analysts expected a September increase of 2.0%.
In a separate report, the data revealed that the Japanese tertiary industry activity index rose by 0.7% last month after contracting 0.4% in August. Analysts expected the tertiary index to rise by 0.5% in September.
The yen was down against the pound and down against the euro, with GBP/JPY up 0.90% and trading at 156.75 and EUR/JPY trading up 0.83% at 132.76.