The Japanese yen advanced to its five-week high against the world's reserve currency on Wednesday, spurred higher by speculation that the government shutdown in the U.S. will be belabored and political acrimony will continue, Bloomberg reports.
Feuding leaders in the nation hosting the globe's largest economy are likely to encounter trouble conducting discussions about increases to the debt ceiling later this month. The currency of the Pacific Rim nation achieved gains of at least 0.5 percent against all 16 of its top rivals.
Thus far this year, the Japanese yen has dived nearly 10 percent against the U.S. dollar. The 9.7 percent drop of the currency of the Pacific Rim nation establishes it as the worst-performing monetary unit of major currencies followed by the news service.
The yen rose 0.6 percent against the U.S. dollar and the common currency of the European Union during the Wednesday trade session.
Japanese Prime Minister Shinzo Abe said on Monday that the government plans to implement sales tax increases next year, according to The Wall Street Journal. Presently standing at 5 percent, the sales tax will be boosted to 8 percent in April.
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