The dollar curved in to a five-month low not in favor of the yen
on Monday as rising tensions over North Korea kept the safe-haven Japanese
currency in demand.
Growing geopolitical risks an added notch, North Korea on Sunday prepared
what was believed to be a failed missile test launch. Regional tensions have
risen over the past weeks as U.S. President Donald Trump has taken a tough symbolic
line with Pyongyang.
"It is unclear whether the circumstances over North Korea
will rise into military action, but uncertainty is increasing and the dollar
continues to edge lower. The dollar also looks shaky technically, after
slipping below the 200-day moving average of 108.80 yen," said Masafumi
Yamamoto, chief currency strategist at Mizuho Securities in Tokyo.
Japan's proximity to the Korean Peninsula, still, means that the
yen's safe-haven status could be battered if tensions between Washington and
Pyongyang escalated into open disagreement.
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