Oct 11 2013

Report says, Yen dropped against all of its leading peers as Asian shares innovative amid continued negotiations inside the U.S. lawmakers to deflect a default, curbing demand for Japan’s currency as a refuge. Due to the dollar rises on its fourth day against the Japanese currency as U.S. Republicans and President Barack Obama committed further discussions on a debt-limit modification and government shutdown.

 

On Oct. 10 (Bloomberg) -- U.S. House Majority Leader Eric Cantor, a Virgnia Republican, talks with reporters following Republicans' meeting with President Barack Obama regarding the federal debt limit and partial government shutdown. (Source: Bloomberg)

 

Australia’s dollar was headed for back-to-back weekly gains after the yield premium its two-year debt offers over the U.S. climbed to its highest since April. New Zealand’s currency gained before a Chinese trade report tomorrow forecast to show exports and imports grew last month.

 

Cantor Says Talks With Obama on Debt to Continue 0:30

 

Daisaku Ueno, the chief currency strategist at Mitsubishi UFJ Morgan Stanley Securities Co. in Tokyo said, “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 and a unit of Japan’s biggest financial group by market value. “It’s convenient to use dollar-yen to take part in this kind of swing trade.”

 

The MSCI Asia Pacific Index of shares climbed 1.1 percent. Japan’s markets will be closed on Oct. 14 for a holiday.

 

Obama and House Republican leaders met for 90 minutes at the White House day before today after House Speaker John Boehner of Ohio said he would offer a measure to postpone a potential U.S. default to Nov. 22 from Oct. 17.

 

The yen lost 0.2 percent comparing to 98.37 per dollar as of 6:43 a.m. London time, having slid 1.5 percent in the prior three sessions. It fell as low as 98.55, the weakest since Oct. 1. Japan’s currency dropped 0.3 percent to 133.13 per euro, poised for a 0.8 percent weekly decline. The greenback dipped 0.1 percent to $1.3535 per euro.

Rate Range Projection by Bank

 Next  week           96.00 -  99.50

Next 3 months      90.00 - 105.00

 

Everyone in the marketplace is waiting to watch the outcome of  Debt -limit Talks in US, but it is also market consensus and it is possible that they will increase the limit sooner or later.