Forex

Yen beats dollar and other peers amid geopolitical tensions

Yen Hedging

The U.S. dollar notches its lowest level since June 15 against Japanese yen as it also made gains on other major peers on Wednesday. This is in reaction to the on-going geopolitical tension surrounding North Korea.

The dollar slipped as low as 0.4 percent versus the Japanese yen at 109.890 yen after a retreat to an eight-week high of 109.740. The greenback is always being surpassed by the yen in times of political turmoil’s.

Societe Generale’s director of forex Kyosuke Suzuki said the dollar/yen pair has already gone under 110.000 yen and there are possibilities that we’ll witness them to start bottoming out as the market seeks more time to evaluate the situation. He added that North Korea conducting a nuclear experiment and how the U.S. will react will be the next center of attention.

U.S. President Donald Trump said to the hermit state that any threat presented to his country would be “met with fire and fury” and just hours after his comments, North Korea said it is carefully examining an outline for a strike on the U.S. Pacific territory of Guam.

On the yen’s performance against its peers; the euro edged down more than 0.6 percent at 128.960 yen after notching a 1-1/2-year high above 131.000 on the previous week. In the Down Under, the Australian dollar inched down by 1 percent versus 84.43 yen.

Meanwhile the index which tracks the value of the greenback against its major opposing currencies, the U.S. dollar index, was unmoved at 93.633. Across the Korean Strait, the South Korean won dropped by 0.8 percent to 1,135.6 to the dollar.

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