AFP,
(14/10) -- The dollar weakened in Asian trade Monday as lawmakers in
Washington struggle to agree a budget deal that will avoid a damaging
debt default.In Singapore morning trade, the greenback slipped to 98.28 yen from 98.59 yen in New York late Friday.The
euro rose to $1.3564 from $1.3546 but dipped to 133.30 yen from 133.55
yen. Japanese markets are closed for a public holiday.Republicans
and Democrats were unable to find a compromise after a rare Sunday
session to hammer out a deal to reopen the federal government and raise
the country's borrowing limit before a October 17 deadline.The government partially shut down on October 1 after lawmakers failed to agree a new budget.Harry
Reid, the Democratic Leader in the Senate, painted an optimistic
picture of the dialogue late Sunday with Republicans, though nothing
concrete was disclosed.Failure to lift the debt limit by
Thursday would leave the government unable to pay its bills or service
its debts, leading to a devastating default that analysts warn will tip
the global economy back into recession.'So far, markets have not
panicked because both parties have come out to reassure that they are
working towards a compromise after every failed vote, keeping alive
hopes for a last-minute deal,' DBS Bank said in a note.
