Dollar Gains 4th Day Versus Yen as U.S. Debt-Limit Talks Proceed

 The dollar gained for a fourth day versus the yen as talks continued between U.S. Republicans and President Barack Obama on a debt-limit increase and government shutdown.

The yen briefly advanced versus its major peers after the New York Times reported Obama had rejected a Republican proposal for a short-term debt-ceiling increase. Japan’s haven currency reversed the advance as statements from the White House and Republican leaders indicated no decision had been reached. Australia’s dollar was headed for back-to-back weekly gains after the yield premium its two-year debt offers over the U.S. climbed to its highest since April.

The dollar climbed 0.3 percent to 98.40 yen as of 10:32 a.m. Tokyo time, adding to a three-day, 1.5 percent advance to 98.16 yesterday. It earlier fell by as much as 0.2 percent. The greenback was at $1.3522 per euro from $1.3520 yesterday and has risen 0.3 percent this week. Europe’s common currency gained 0.2 percent to 133.05 yen.

The MSCI Asia Pacific Index of shares added 1.2 percent. Japan’s markets will be closed on Oct. 14 for a holiday.

President Obama didn’t accept or reject House Republicans’ plan to increase the debt limit as the two sides pledged to keep talking about avoiding default and ending the partial government shutdown. Both sides described the talks as constructive with a week remaining until U.S. borrowing authority lapses.

(Source: Bloomberg)