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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.
On Friday, the evergreen buck declined versus its counterparts due to the fact that Fed Vice Chairman Richard Clarida expressed concerns as for global surge and came up with quite dovish remarks on monetary policy…
On Friday, the UK currency managed to inch up notwithstanding worries over Brexit as well as the resignation of major statesmen in Prime Minister Theresa May’s cabinet…
On Thursday, the evergreen buck surged versus its counterparts because mostly bullish economic data managed to reaffirm investor hopes that the American economy is still on firm footing, while a dive in the UK currency also backed sentiment…
Safe havens such as gold and Japanese yen declined as investors sentiment was boosted by eased geopolitical tensions…
On Tuesday, the euro tacked on because market participants waited for reports on inflation and growth in the euro zone, while the Japanese yen went down after Japan’s major bank told it would be more flexible in its huge stimulus program…
On Tuesday, the evergreen buck dived because the common currency bounced off and the UK pound managed to ascend to the day’s maximums reacting to reports that British Prime Minister Theresa May is going to take control of Brexit talks…
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