The Japanese Yen climbed against the US Dollar following last night’s last minute Congressional deal to re-open the federal government and raise the debt ceiling.
The Yen advanced against the US currency after President Barrack Obama signed into law a measure to end the US government shutdown and raise the debt ceiling. The deal cause investors to breathe a sigh of relief, but too many economists the deal failed to clear up the uncertainty over the issues.
The deal postponed a definitive decision on the issues until early next year in another example of a government kicking its problems down the road.
The US Senate voted 81-18 to put an end to the two-week long shutdown and raise the borrowing limit. The House of Representatives voted 285-144 to clear the measure. The deal negotiated by Senate Majority Leader Harry Reid, a Democrat, and Minority Leader Mitch McConnell, a Republican, will see the government funded until Jan. 15th , 2014, and suspend the debt limit until February 7th.
After the deal was announced the US Dollar made gains against the Japanese Yen but quickly lost momentum as doubts over the deal surfaced. The disagreement between Republicans and Democrats over budget cuts and the controversial Obamacare act is likely to cause disruption again early next year, something that both the World Bank and International Monetary Fund warned against.
Ominously Republican Senator Mike Lee indicated that more trouble could occur saying; “The media keeps asking; ‘was it worth it?’ My answer is, it is always worth it to do the right thing, and this is not over.”
The Yen could find further support later today if data out of the US shows that the number of people claiming jobless benefits rose as a result of the government shutdown.
Current Japanese Yen (JPY) Exchange Rates:
The US Dollar/Japanese Yen Exchange Rate is currently in the region of: 97.9252
The Pound Sterling/Japanese Yen Exchange Rate is currently in the region of: 157.3115
The Euro/Japanese Yen Exchange Rate is currently in the region of: 133.4329
The New Zealand Dollar/Japanese Yen Exchange Rate is currently in the region of: 82.8566
The Australian Dollar/Japanese Yen Exchange Rate is currently in the region of: 93.8740
(Correct as of 10:20 am GMT)
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