The yen climbed against its 16 major peers after Treasury Secretary Jacob J. Lew renewed his call for extending a U.S. debt limit to avoid a default, boosting demand for Japan’s currency as a haven.
The Swiss franc rose against the greenback after House Speaker John Boehner said the U.S. could end up in default unless President Barack Obama negotiated, with the government shutdown about to enter a seventh day. The pound rose from near a one-month low against the euro before the Bank of England’s policy meeting this week.
“The deadline to avoid a U.S. government default is approaching, and risk aversion is building,” said Toshiya Yamauchi, a senior analyst in Tokyo at Ueda Harlow Ltd., which provides margin-trading services. “The weekend brought no agreement in Washington, and until we have one, the yen is likely to be bought as a haven.”
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