Greenback down against yen despite rallying on US debt ceiling agreement
AFPTOKYO--The dollar enjoyed a short rally against the yen in Asia Thursday after U.S. lawmakers reached a last-minute deal to avoid a catastrophic debt default.
October 18, 2013, 12:05 am TWN
But the rally was cut short on concerns that the deal only offered a short-term solution and does not resolve the budgetary issues that split Republicans and Democrats.
Investors are now focused on the release of U.S. data — including payrolls and retail sales — which was delayed due to the government shutdown. It is unclear when the key figures will be published.
The U.S. unit hit 99 yen in Tokyo morning trade — from 98.79 in New York Wednesday — before settling back to 98.51 yen after Congress passed a bill extending the nation's borrowing limit and ending a two-week government shutdown.
However, the greenback remained above the 98.16 yen in New York on Tuesday.
The euro rose US$1.3543 from US$1.3535 but weakened to 133.47 yen from 133.74 yen.
The dollar was mixed against other Asia-Pacific currencies.
It fell to 10,942 Indonesian rupiah from 11,335 rupiah Wednesday, to 43.12 Philippine pesos from 43.23 pesos, and to 61.60 Indian rupees from 61.83 rupees.
The greenback also slipped to 1,063.80 South Korean won from 1,066.52 won and to 31.13 Thai baht from 31.25 baht.
It firmed to SG$1.2439 from SG$1.2428.
The Australian dollar hit a four-month high of 95.66 U.S. cents early Thursday but eased slightly to 95.36 cents in afternoon trade, although it is still up from 95.20 cents on Wednesday.
The Chinese yuan bought 16.14 yen against 16.15 yen.