The pair closed in NY Friday at Y98.58 after recovering off a session low of Y98.19 through the NY session to Y98.60 ahead of the close. Hopes for some resolution to the US debt ceiling impasse, as well as positioning ahead of today’s US and Tokyo holidays, was seen providing the main drive. Rate was marked lower into opening Asian trade as reports from the weekend suggested that US debt talks had broken down. Rate dropped to Y98.08 as leveraged names provided the early weight, only to be met by decent retail demand which cushioned. Comments from Senator Reid suggesting that there were hopes of coming to some agreement ahead of Oct17 (seen as the key cut off date though others have this pushed out to Oct31-Nov1) allowed rate to lift to Y98.35 before it settled between Y98.25/35 for the balance of the session. Euro-yen trackeddollar-yen, posting opening Asian lows at Y132.87 before it settled back between Y133.25/35 ahead of Europe. US and Canada holidays expected to add to quiet trading conditions through the day.
