Dollar rises against yen after US debt deal

Agence France-Presse . Tokyo

The dollar climbed against the yen in Asia on Monday, after US president Barack Obama announced an 11th-hour

agreement to raise the US

debt limit to avoid default

that is pending approval

by Congress.

The dollar was at 77.45

yen in Tokyo at 0500

GMT after briefly rising

above the 78 yen level, from 76.73 yen in New York late Friday.

The euro fetched $1.4393 against $1.4395. The European single unit rose to 111.51 yen from 110.41 yen.

Obama announced late Sunday that he and top lawmakers had reached a tentative 11th-hour deal to avert a disastrous debt default that would have had a chaotic impact on the world economy.

'I want to announce that the leaders of both parties in both chambers have reached an agreement that will reduce

the deficit and avoid

default, a default that would have had a devastating

effect on our economy,'

Obama said in hastily announced remarks at the White House.

If approved, the deal will raise the debt ceiling by

at least $2.1 trillion — enough to reach 2013 — and entail

cuts of $2.5 trillion dollars in two rounds, an official said Sunday.

Source : New Age

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