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The U.S. dollar traded higher against the Japanese yen during Wednesday’s session despite news that one of the major ratings agencies has warned about the U.S. inching closer to its first ever sovereign debt default. "The prolonged negotiations over raising the debt ceiling ... risks undermining confidence in the role of the U.S. dollar as the preeminent global reserve currency, by casting doubt over the full faith and credit of the U.S. This `faith' is a key reason why the U.S. 'AAA' rating can tolerate a substantially higher level of public debt than other AAA" bonds," said Fitch in a statement. Elsewhere, the New Zealand dollar traded higher against its U.S. counterpart during Wednesday’s Asian session following the release of consumer price inflation data. Statistics New Zealand said the country’s CPI rose 0.9% in the third quarter following a second-quarter gain of 0.2%. The third-quarter reading was in line with analysts’ estimates. Later Wednesday, the UK Office for National Statistics will release the Unemployment Rate data. Statistics Canada is expected to release the Manufacturing Sales data. By TradingForex.com