The dollar hit a fresh four-month low versus the yen in Asia trade Tuesday after a speech by US President Barack Obama illustrated a lack of progress in efforts to end a debt standoff.
The dollar fell to 77.89 yen, its lowest level since March 17, after US president Barack Obama addressed the nation in a prime time TV speech in which he warned that the current debt impasse could have grave consequences.
Failure to compromise, he said, 'would risk sparking a deep economic crisis — one caused almost entirely by Washington.'
The euro rose to $1.4489 by 0550 GMT in Tokyo
from $1.4382 in New York Monday.
The speech fell 'short of market expectations that the President might show progress on the ongoing standoff,' Hideki Hayashi, global economist at Mizuho Securities, told Dow Jones Newswires.
The greenback later saw volatile trade, at one point surging to 78.70 yen before falling back to 78.08 in the afternoon.
The euro was at 113.08 yen from 112.37 in New York.
Dealers said the movement was due to large yen selling orders being triggered as opposed to any Japanese market intervention.
Source : New Age
