Asian Session – Yen continues decline as Dollar gains on debt deal hopes
October 11, 2013 6:30 am
The US dollar continued the rally in the Asian session on Friday, as investors there also rode on the optimism of a debt deal in the US. Political headlines are dominating market moves in recent days and the main driver of the USD especially due to a lack of US economic data amid the US government shutdown.
Investors were initially nervous immediately ate the US government shutdown and deadlock in negotiations on the debt ceiling, largely driven by fears related to a loss of liquidity in the financial system.
The US shutdown has entered its eleventh day but the fact that the two parties in Washington moved to hold talks in a bid to end a budget stand-off helped give hope for a resolution before the October 17 debt ceiling deadline.
While agreement had not been reached in Thursday’s meeting between US President Obama and the House Republicans, there was progress being slowly made and this had a positive impact on Asian markets today.
The dollar advanced even higher against the yen during the session to extend yesterday’s gains, with USDJPY hitting a high of 98.54 yen, up 0.4 percent the close of New York.
The Euro traded as high as $1.3543 but has mostly remained within a range since early yesterday above $1.3516. Against the yen, euro made gains up to a session high of 133.43 yen.
The US dollar continued the rally in the Asian session on Friday, as investors there also rode on the optimism of a debt deal in the US. Political headlines are dominating market moves in recent days and the main driver of the USD especially due to a lack of US economic data amid the US government shutdown.
Investors were initially nervous immediately ate the US government shutdown and deadlock in negotiations on the debt ceiling, largely driven by fears related to a loss of liquidity in the financial system.
The US shutdown has entered its eleventh day but the fact that the two parties in Washington moved to hold talks in a bid to end a budget stand-off helped give hope for a resolution before the October 17 debt ceiling deadline.
While agreement had not been reached in Thursday’s meeting between US President Obama and the House Republicans, there was progress being slowly made and this had a positive impact on Asian markets today.
The dollar advanced even higher against the yen during the session to extend yesterday’s gains, with USDJPY hitting a high of 98.54 yen, up 0.4 percent the close of New York.
The Euro traded as high as $1.3543 but has mostly remained within a range since early yesterday above $1.3516. Against the yen, euro made gains up to a session high of 133.43 yen.
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