Investing.com - The dollar was lower against the yen on Tuesday as the U.S. government began a partial shutdown after Congress failed to pass a budget for the next financial year. USD/JPY hit 97.88 during late Asian trade, the session low; the pair subsequently consolidated at 97.93, shedding 0.30%. The pair was likely to find support at 96.97, the low of August 27 and resistance at 98.72, the session high. The dollar remained broadly lower as the U.S. government began a partial shutdown after lawmakers failed to reach an agreement on a new budget. It is the first partial government shutdown in the U.S. for 17 years. Republicans have insisted on delaying the implementation of President Obama's health care reforms as a condition for passing the budget. The dollar briefly touched session highs against the yen after Japanese Prime Minister Shinzo Abe said Tuesday his government will raise the rate of sales tax to 8% from 1 April next year, from the current rate of 5%, as a way to reduce the country’s public debt. Elsewhere, the euro was fractionally higher against the euro, with EUR/JPY inching up 0.05% to 132.89. Investors were closely watching political developments in Italy, with Prime Minister Enrico Letta due before parliament for a vote of confidence on Wednesday, after Silvio Berlusconi pulled his ministers out of the coalition government on Saturday.

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