Kontak Perkasa - Bloomberg (16/10) -- The dollar rose
versus the yen for the first time in three days after Senate leaders
resumed talks to avoid a U.S. default and reopen the government, damping
demand for Japan’s haven assets.
The yen dropped against all major peers as Standard & Poor’s 500 Index futures and Asian stocks gained with the Senate discussions representing the clearest path to a deal. Any agreement would need to clear hurdles including persuading House Speaker John Boehner to allow a vote. New Zealand’s currency rose for a fourth day as faster-than-expected inflation boosted chances the central bank will raise its key interest rate.
“The way the market is trading is, small selloffs on bad news and big rallies on positive news,” said Sean Callow, a senior currency strategist at Westpac Banking Corp. in Sydney. “I’d want to know whether Boehner will present any bill agreed on in the Senate for a vote in the House. That’s what we really need for a real relief rally.”
The dollar rose 0.4 percent to 98.52 yen as of 9:42 a.m. in Tokyo after a 0.4 percent slide in the previous two days. It was little changed at $1.3511 per euro after climbing 0.3 percent yesterday. New Zealand’s currency rose 0.1 percent to 83.93 U.S. cents. The euro gained 0.3 percent to 133.11 yen.
The Bloomberg U.S. Dollar Index, which tracks the performance of the greenback against 10 major peers, was little changed at 1,012.92.
Senate Majority Leader Harry Reid, a Democrat, and Minority Leader Mitch McConnell, a Republican, had suspended talks earlier while the House considered its own bill. They must now reach a final agreement, get all 100 senators to permit an expedited vote and persuade Boehner to allow a vote in the House that would pass largely with Democratic support.
The Treasury Department will have about $30 billion on hand after Oct. 17. Depending upon daily tax receipts and incoming bills, the U.S. government could be forced to default on its obligations at any date thereafter -- to bondholders and millions of Social Security recipients.
The yen dropped against all major peers as Standard & Poor’s 500 Index futures and Asian stocks gained with the Senate discussions representing the clearest path to a deal. Any agreement would need to clear hurdles including persuading House Speaker John Boehner to allow a vote. New Zealand’s currency rose for a fourth day as faster-than-expected inflation boosted chances the central bank will raise its key interest rate.
“The way the market is trading is, small selloffs on bad news and big rallies on positive news,” said Sean Callow, a senior currency strategist at Westpac Banking Corp. in Sydney. “I’d want to know whether Boehner will present any bill agreed on in the Senate for a vote in the House. That’s what we really need for a real relief rally.”
The dollar rose 0.4 percent to 98.52 yen as of 9:42 a.m. in Tokyo after a 0.4 percent slide in the previous two days. It was little changed at $1.3511 per euro after climbing 0.3 percent yesterday. New Zealand’s currency rose 0.1 percent to 83.93 U.S. cents. The euro gained 0.3 percent to 133.11 yen.
The Bloomberg U.S. Dollar Index, which tracks the performance of the greenback against 10 major peers, was little changed at 1,012.92.
Senate Majority Leader Harry Reid, a Democrat, and Minority Leader Mitch McConnell, a Republican, had suspended talks earlier while the House considered its own bill. They must now reach a final agreement, get all 100 senators to permit an expedited vote and persuade Boehner to allow a vote in the House that would pass largely with Democratic support.
The Treasury Department will have about $30 billion on hand after Oct. 17. Depending upon daily tax receipts and incoming bills, the U.S. government could be forced to default on its obligations at any date thereafter -- to bondholders and millions of Social Security recipients.
Written by: Kontak Perkasa Futures
PT.Kontak Perkasa Futures, Updated at: 9:44 AM
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