Japanese yen is firm on North Korea's nuclear test

Japanese yen is firm on North Korea's nuclear test

On Monday, the Japanese yen soared versus the evergreen buck because market participants changed their exposure to riskier assets right after North Korea dared to conduct its most powerful nuclear test.

The US currency dived to as low as 109.22 yen during early Asian trade.

The heightened risk aversion followed Sunday’s news of North Korea's sixth and perhaps most powerful nuclear test. It actually prompted the warning of a huge military response from America in case it or any of its allies were threatened.

By the way, the Japanese yen nearly always surges when market participants try reducing exposure to risk. It’s because the Japanese currency is often utilized as a funding source to purchase riskier, higher-yielding assets.

Japan appears to be the world's number one net creditor nation, so at times of uncertainty market participants suggest Japanese repatriation from foreign countries will supplant foreign investors' selling of Japan’s assets. Apparently, the Japanese yen has kept behaving as a safe-haven currency notwithstanding Japan's proximity to North Korea.

Similar

USD/CAD dives notwithstanding dismal Canadian data

On Monday, the greenback dived versus its Canadian rival notwithstanding the publication of dismal Canadian data because the American government shutdown kept dampening demand for the US currency…

Aussie dives, Kiwi stands still in late trade

On Monday, the Australian dollar sank versus its American rival, while the New Zealand dollar was intact because market participants were still digesting the American government shutdown…

Popular

Japan real wages surge is slowest in almost two years

Japan's March real wages went down at the fastest pace in nearly two years, weighed by minor nominal pay lifts as well as a moderate ascend in consumer prices, thus posing a setback for Prime Minister Shinzo Abe's tries to revitalize the Japanese…

promotions you can be interested in

Deposit with your local payment systems

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Internal error. Please try again later

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera