Forex

United States dollar falls below 12-week high against the Japanese safe-haven yen

Dollar beats yen and franc

Monday, brought by impending focus on geopolitical risks along with the concerns that North Korea may be preparing another missile test anytime soon, the United States dollar inched below its 12-week high against the Japanese safe-haven yen; the greenback traded at 112.56 yen JPY=, which was an inch lower than Friday’s peak of 113.44 yen JPY= which is considered as the dollar’s highest since July 14.

In accordance to this, according to the dollar index, the dollar slid 0.1% against a group of its six major currency rivals on Monday, and traded at 93.709, which was just an inch below its 94.267 on Friday which was considered as the greenback’s highest in approximately two months.

The dollar’s fall was brought by concerns about North Korea’s preparation to test a long-range missile, which according to news can reach the west coast of the United States. This information was given by a Russian lawmaker who had returned from a visit to Pyongyang and was repeated by Russia’s RIA news agency on Friday.

In addition, this geopolitical tension reinforced the safe-haven yen, however, Stephen Innes, head of trading in Asia-Pacific for Oanda in Singapore claimed that the greenback was already set in retreat brought by profit-taking, and that the market just amplified the dollar’s fall after the headlines reached them.

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