Greenback drops as US gov't leaps from fiscal cliff
AFPTOKYO--The U.S. dollar fell in Asia on Tuesday as the United States lurched into its first government shutdown in 17 years due to a budget standoff.
October 2, 2013, 12:09 am TWN
The greenback bought 98.16 yen in Tokyo afternoon trade after U.S. lawmakers missed a midnight deadline to avert the shutdown, down from highs of around 98.70 in morning trade and 98.21 yen in New York on Monday afternoon.
The U.S. government shutdown early Tuesday triggered agency closures and hundreds of thousands of furloughs as Congress missed a deadline to pass a budget.
“The economic impact (of the shutdown) is unclear. That's why investors are holding off on their trading,” said Kosuke Hanao, head of foreign exchange at HSBC in Japan.
In Europe, the euro edged up despite a political row in Italy that threatens the future of the country's young government. The single currency fetched US$1.3547 and 132.93 yen compared with US$1.3524 and 132.81 yen in U.S. trade.
Italian Prime Minister Enrico Letta is battling to save his coalition from collapse after former Premier Silvio Berlusconi said he was pulling his party's ministers out of the cabinet. Letta is due to go to parliament on Wednesday for a confidence vote in his government, which was formed barely five months ago.
The U.S. dollar was mostly lower against other Asia-Pacific currencies.
It slipped to 62.35 Indian rupees from 62.78 rupees the previous day, to SG$1.2531 from SG$1.2570, to 31.21 Thai baht from 31.39 baht, to 43.31 Philippine pesos from 43.53 pesos, to 11,239 Indonesian rupiah from 11,655 rupiah.
The greenback rose to 1,074.01 South Korean won from 1,073.88 won.
The Australian dollar strengthened to 93.86 U.S. cents from 93.11 cents after the nation's central bank held interest rates at their record low of 2.50 percent.
The Chinese yuan changed hands at 16.01 yen from 15.97 yen.