The dollar gained versus the euro for the first time in three days as U.S. lawmakers worked to end the two-week government shutdown and keep the U.S. from exhausting its ability to borrow money.
The yen jumped from a two-week low versus the U.S. currency after Fitch Ratings put the nation’s AAA credit grade on rating watch negative, saying the authorities have failed to raise the debt ceiling as the deadline looms. Senate leaders said talks on a bipartisan plan were put on hold two days before the debt-limit deadline while the House considers its competing measure. Norway’s krone slid as the nation’s trade surplus shrank.
“A deal looked possible over the weekend, and we’ve had nothing but negative news and the latest sentiment is definitely negative,” Chris Gaffney, senior market strategist at Everbank Wealth Management Inc., said in an interview from St. Louis. “The yen is seen as a safe-haven currency, and it’s getting a lot of interest because of that.”
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.