The dollar sank to a record low versus the Swiss franc and Treasuries fell as President Barack Obama and House Speaker John Boehner struggled to agree on the U.S. debt limit. Asian stocks rebounded as companies from Canon Inc. to Baidu Inc. forecast improving earnings.
The U.S. currency slid 0.5 percent against the Swiss franc as of 1:25 p.m. in Tokyo and weakened below 78 yen for the first time since March. Ten-year Treasury yields advanced two basis points. The MSCI Asia Pacific Index jumped 1.1 percent, while Standard & Poor’s 500 Index futures rose 0.2 percent. Gold traded near a record high, and copper snapped a four-day loss. Obama called on lawmakers to put politics aside to reach a deal on a “balanced approach” to lifting the U.S.’s $14.3 trillion debt ceiling, while Boehner said the president “wants a blank check” to continue spending. Stocks rose as Canon lifted its profit estimate 18 percent and Baidu, the owner of China’s most popular Internet-search engine, forecast sales that beat analyst estimates. Central banks from South Korea and Australia also signaled growth in the Asia Pacific may improve.
“From the two speeches we’ve heard, it doesn’t seem like they’re on the doorstep of coming up with a deal,” Stephen Halmarick, the Sydney-based head of investment markets research at Colonial First State Global Asset Management, which oversees about $150 billion, said in a Bloomberg Television interview. “Markets will remain fairly nervous.”
The Dollar Index, which tracks the U.S. currency against those of six major trading partners, dropped 0.5 percent, set for the lowest close since June 7. The greenback traded at 80.23 Swiss centimes and earlier touched 80.06, the weakest on record. The U.S. currency dropped to 77.90 yen, the lowest level since March 17, before trading at 78.04 yen. 
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