Dollar mixed in Asia after US budget deal

TOKYO: The dollar edged up slightly against the yen, but slipped against the euro in Asian trade on Friday as dealers turn their attention from the US debt showdown to the future of the Federal Reserve's stimulus programme.

The greenback bought 98.01 yen midday Friday in Tokyo, marginally up from 97.91 yen in New York but well below the mid-98 yen range in Tokyo earlier Thursday.

The euro bought $1.3663 and 133.85 yen compared with $1.3677 and 133.92 yen.

While markets breathed a sigh of relief that US lawmakers on Wednesday agreed a deal to reopen the government and avert a default, the temporary nature of the fix weighed on sentiment.

The bill restarts government operations until January 15 and raises the debt ceiling until February 7, giving lawmakers time to draw up a longer term deal.

"Despite a US deal being done and a crisis averted (for now), investors are now wondering whether to expect another government shutdown and another round of deadline-day deals early next year," National Australia Bank said in a statement.

"There's been a big move in the US dollar overnight as markets now start to reassess the Fed outlook," it said, adding that the Fed would likely put off winding down its stimulus scheme until early next year owing to the impact of the shutdown on the economy.

The dollar was also weighed by lower Treasury yields as the debt deal lifted risk sentiment, dealers said.

The 10-year Treasury yield fell to 2.59 percent from 2.67 percent late Wednesday, while the 30-year fell to 3.66 percent from 3.72 percent.