The Japanese Yen is trading higher against the Pound and the majority of its most traded peers following the fall in stocks in the USA and Asia.
Concerns are growing that the United States could face a shutdown of the federal government as President Obama once more goes head-to-head with the US Senate over funding. The Senate is set to hold a vote later on Wednesday to test to see what the outcome of a real vote on legislation passed by the House of Representatives will be.
The legislation proposes that funds for the Federal government will be provided until December the 15th but would choke off any funding to Obama’s health-care laws. The debate is likely to create further instability in the markets which will lead to a strengthening of the safe haven Japanese Yen as a consequence as investors seek shelter.
Confidence in Japan’s energy supplies received a boost on Wednesday as well after Prime Minister Shinzo Abe announced that Japan and Canada have agreed to cooperate more closely on the trade of natural gas in the wake of the Fukushima nuclear crisis.
“The importation volume of natural gas is increasing and the prices remain high,” Abe said. “Canada, endowed with rich energy resources including natural gas, has a very high potential in the context of energy cooperation.”
The Yen also found some support after the latest small business confidence data showed a better than expected rise in September. According to Shoko Chukin Bank’s business sentiment index confidence in Japans smaller firms improved more than expected to 49.8, up from the 49.7 in August.
Current Japanese Yen (JPY) Exchange Rates
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 98.5709
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 157.7073
The Euro/Japanese Yen Exchange Rate is currently in the region of: 132.9622
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 81.1190
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 92.0790
(Correct as of 10:00 am GMT)