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Bloomberg (8/10) -- The yen reached an
eight-week high against the dollar as President Barack Obama reiterated
he won’t negotiate with Republicans over the debt limit, driving demand
for Japan’s currency as a haven.
The yen strengthened by the most since
Sept. 18 yesterday as the U.S. government’s partial shutdown continued
for a seventh day. Treasury Secretary Jacob J. Lew has warned the U.S.
may be unable to pay its bills after Oct. 17. Demand for the euro was
supported before a report today forecast to show a rebound in German
factory orders.
The yen was little changed at 96.75 per
dollar as of 8:03 a.m. in Tokyo from yesterday, after earlier touching
96.57, the strongest since Aug. 12. Japan’s currency traded at 131.35
per euro from 131.32 in New York, after reaching 131.15, the most since
Sept. 9. The single currency fetched $1.3577 after gaining 0.2 percent
to $1.3581 in the previous session.
The yen tends to strengthen during
periods of financial and economic turmoil because Japan isn’t reliant on
foreign capital to fund its deficits.
“We’re not going to negotiate under the
threat of economic catastrophe,” Obama said yesterday during a visit to
the Federal Emergency Management Agency in Washington.
Republicans are insisting on changing
the 2010 Affordable Care Act, while Obama refuses to engage in
discussions about policy conditions tied to opening the government or
raising the debt ceiling.
In Germany, factory orders probably
rose 1.1 percent in August, after a 2.7 percent decline the previous
month, according to the median estimate of economists polled by
Bloomberg News.
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Written by: Kontak Perkasa Futures
PT.Kontak Perkasa Futures, Updated at: 9:02 AM
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