The Japanese Yen weakned against all 16 of its most traded peers as economists increased their expectations that a deal will be reached regarding the ongoing government shutdown and encroaching debt ceiling deadline in the United States.
Investor expectations for a deal agreement continue to grow as they predict that the US government will not allow the world’s largest economy to default on its debts. If it does then the impact on the global economy is expected to be catastrophic. No deal emerged after a 90-minute meeting between President Barack Obama and Republican leaders on Thursday, but talks continued deep into the night in an effort to reopen the government and avoid a possible U.S. debt default.
“An agreement on the debt ceiling is seen as a risk-on catalyst, while the opposite is risk off — it’s as simple as that, it’s convenient to use dollar-yen to take part in this kind of swing trade,” said Daisaku Ueno, chief currency strategist Mitsubishi UFJ Morgan Stanley Securities Co
Japan has been piling on the pressure to the US government as it is one of the nations which holds the most US debt, the other is China. Earlier in the session Japanese economics minister Akira Amari urged the US to show some responsibility. The Chinese have also expressed their annoyance at the impasse.
Later in the session the Yen could recover its losses as consumer confidence data is expected to show a fall in sentiment to its lowest level since January.
Current Japanese Yen (JPY) Exchange Rates:
< Down > Up
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 98.3060 >
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 157.1226 >
The Euro/Japanese Yen Exchange Rate is currently in the region of: 133.304 >
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 81.8615 >
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 93.0889 >
(Correct as of 11:35 am GMT)