Japan's finance minister warns of 'consequences' of US debt default
TOKYO (AFP) - Japanese Finance Minister Taro Aso on Friday urged the United States to resolve a budget gridlock in Washington that triggered a government shutdown, warning of grim "consequences" for the global economy.
The present impasse, where the refusal of a right-wing rump of the Republican Party in Congress to pass a budget bill has resulted in the first shutdown in 17 years, is already affecting the currency markets, Mr Aso said, warning it could worsen.
"I think this could likely result in a situation where the dollar will be sold and the yen will be bought," he told reporters.
The yen has already soared to multi-month highs against the dollar, as traders move out of the greenback and into the safe haven of the Japanese currency.