Dollar down as investors await deal
AFPTOKYO--The dollar eased against the yen in Asia on Tuesday as traders focus on Washington, where lawmakers say they are close to a deal to reopen the government and avert a debt default.
October 16, 2013, 12:11 am TWN
The greenback bought 98.43 yen in Tokyo trade against 98.67 yen in New York on Monday afternoon.
The euro bought US$1.3558 and 133.58 yen compared with US$1.3559 and 133.79 yen.
The tea party, the Republican Party's ultra-conservative faction, have been berated as political novices bent on upending government, with members resisting efforts to pass spending bills or raise the debt limit without extracting dramatic concessions from the Obama administration.
Failure to raise the government's borrowing limit by Oct. 17 would not only lower the value of Treasury bills held by Japan but would also rock international financial markets.
But there is growing hope that a deal to avert the crisis would be struck soon after a series of talks in Washington.
The dollar could climb toward the 99-yen level in the short-term, but not higher, as expectations increase that the crisis may be defused and a default averted, said Osamu Takashima, chief FX strategist at Citigroup Global Market Japan.
Top Senate leaders said they were within striking distance of an agreement Monday.
Signs of progress prompted the White House to postpone a meeting of key power brokers on the crisis that had been due to take place at 1900 GMT Monday.
The dollar was mostly lower against other Asia-Pacific currencies.
It slipped to SG$1.2428 from SG$1.2458 on Monday, and to 10,931 Indonesian rupiah from 10,940 rupiah.
The greenback also sank to 1,066.75 South Korean won from 1,072.31 won, to 43.15 Philippine pesos from 43.16 pesos, and to 31.27 Thai baht from 31.31 baht.
The dollar firmed to 61.67 Indian rupees from 61.23 rupees.
The Australian dollar rose to 95.33 U.S. cents from 94.68 cents, while the Chinese yuan bought 16.10 yen against 16.07 yen.