The Japanese yen on Tuesday slimmed down against the world's reserve currency as speculation increased that political leaders in the U.S. will be able to fulfill successful discourse on pressing economic and financial issues presently plaguing the nation, Bloomberg reports.
The monetary unit of the Pacific Rim nation dropped after rising to its top value in eight weeks, spurred to that level, after the current-account surplus of Japan unexpectedly dropped to its record low for the month of August.
The U.S., host of the globe's largest economy, is in its second week of a partial government shutdown as political leaders feud over budgetary issues. Next Thursday marks the deadline for the U.S. to meet its deadline about raising the debt ceiling.
The Japanese yen slumped about 0.5 percent against the greenback after marking its highest rate since August 12 against its rival. The currency drooped about 0.3 percent against the common currency of the European Union on Tuesday.
High-level officials with the U.S. and Japan did not share an emergency telephone conversation about stalled political discussions in the U.S., an anonymous Japanese official told Reuters. A published report noted officials has shared that conversation.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.