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4 Oct 2013
USD/JPY Dollar tests lows on US shutdown pressure
FXstreet.com (London) - The dollar has continued to lose ground on the yen on US government shut-down concerns, testing one-month lows. With the shutdown now likely to run into the weekend, the chances of an October tapering of the Fed’s asset purchase programme is looking increasingly slim.
The dollar hit JPY96.9450 today. While the shutdown is only in its fourth day, it has meant that key economic data has not been released, including todays scheduled non-farm payroll data and the jobless numbers earlier this week.
Atlanta Federal reserve President Dennis Lockhart has said today that the shortage of data “would tend to make me somewhat more cautious” about tapering the Fed’s bond purchases. He added that If the shutdown lasts until the Fed’s October 29-30 meeting, “it would be very hard to make a decision” on QE.
This morning Bank of Japan Governor Haruhiko Kuroda saw no need to ease policy further on optimism that Japan is fighting its way out of deflation and that government fiscal stimulus would further boost growth next year.
In reference to the US debt ceiling, Kuroda said: "If this continues for a long time, this could destabilize financial markets and worsen sentiment,” adding: "We sincerely hope a solution is reached at an early date."
The dollar hit JPY96.9450 today. While the shutdown is only in its fourth day, it has meant that key economic data has not been released, including todays scheduled non-farm payroll data and the jobless numbers earlier this week.
Atlanta Federal reserve President Dennis Lockhart has said today that the shortage of data “would tend to make me somewhat more cautious” about tapering the Fed’s bond purchases. He added that If the shutdown lasts until the Fed’s October 29-30 meeting, “it would be very hard to make a decision” on QE.
This morning Bank of Japan Governor Haruhiko Kuroda saw no need to ease policy further on optimism that Japan is fighting its way out of deflation and that government fiscal stimulus would further boost growth next year.
In reference to the US debt ceiling, Kuroda said: "If this continues for a long time, this could destabilize financial markets and worsen sentiment,” adding: "We sincerely hope a solution is reached at an early date."