USD/JPY under 97 as no end in sight to US Impasse

The continuing U.S. fiscal standoff pushed the dollar to a fresh eight-month low against the yen in early Asian trading on Tuesday and kept it under pressure against a basket of major currencies.

Although a breakthrough still appeared elusive, a few hopeful signs emerged on Monday, with President Barack Obama saying he would accept a short-term increase in the nation’s borrowing authority to avoid a default.

An influential Senator is also said to be floating a plan to cut federal spending and reform the U.S. tax code as part of a broader deal.


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