Investing.com - The dollar was higher against the yen on Wednesday, lifted by hopes that politicians in Washington can hammer out a deal to avert a U.S. default ahead of a looming deadline.
USD/JPY hit 98.63 during late Asian trade, the session high; the pair subsequently consolidated at 98.42, gaining 0.25%.
The pair was likely to find support at 97.98, Tuesday’s low and near-term resistance at 98.69, Tuesday’s high and a two-week high.
Ratings agency Fitch placed its triple-A rating on the U.S. on “rating watch negative” on Tuesday, saying the political impasse over a deal to reopen the government and raise the debt ceiling has undermined confidence in U.S. economic policy.
"Although Fitch continues to believe that the debt ceiling will be raised soon, the political brinkmanship and reduced financing flexibility could increase the risk of a U.S. default," the firm said in a statement.
If an agreement to raise the federal borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
Senate leaders were to continue negotiations aimed at ending the fiscal impasse on Wednesday, after a last minute deal put forward by House Republicans collapsed.
Elsewhere, the yen was lower against the euro, with EUR/JPY rising 0.21% to 133.02.
The euro zone was to produce reports on consumer prices and the trade balance later in the day.
USD/JPY hit 98.63 during late Asian trade, the session high; the pair subsequently consolidated at 98.42, gaining 0.25%.
The pair was likely to find support at 97.98, Tuesday’s low and near-term resistance at 98.69, Tuesday’s high and a two-week high.
Ratings agency Fitch placed its triple-A rating on the U.S. on “rating watch negative” on Tuesday, saying the political impasse over a deal to reopen the government and raise the debt ceiling has undermined confidence in U.S. economic policy.
"Although Fitch continues to believe that the debt ceiling will be raised soon, the political brinkmanship and reduced financing flexibility could increase the risk of a U.S. default," the firm said in a statement.
If an agreement to raise the federal borrowing limit is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
Senate leaders were to continue negotiations aimed at ending the fiscal impasse on Wednesday, after a last minute deal put forward by House Republicans collapsed.
Elsewhere, the yen was lower against the euro, with EUR/JPY rising 0.21% to 133.02.
The euro zone was to produce reports on consumer prices and the trade balance later in the day.