Yen Falls Against Dollar on North Korean Nuclear Blast

The Japanese yen declined against the U.S. dollar and the euro as the North Korea tested its nuclear bomb, increasing the political tension in the region and the global risk-aversion, while making yen a less attractive asset.
The region’s security was questioned by the traders and investors as they sold the Japanese yen and the Australian dollar. The Democratic People’s Republic of Korea conducted its first nuclear test during the last three years today. The successful nuclear blast poses a real threat to the security of the country’s neighbors and to the stability of the global political and economical relations.
The Japanese yen is itself a «safe haven» currency with a low interest rate, but today, despite the predominantly risk-averting mood on the Forex market, traders prefer U.S. dollar and other currencies over the yen. Some analysts connect today’s decline also with the Japanese government’s dissatisfaction with the overall strong yen’s appreciation during the last few months.
USD/JPY rose from 94.74 to 95.10 as of 15:08 GMT today. EUR/JPY went up from 132.87 to 133.14, while GBP/JPY went up from 150.83 to 151.13.

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