Yen Retreats as Risk Aversion Caused by North Korea Subsides

The Japanese yen retreated versus its major peers after yesterday’s rally caused by a North Korean missile test.

The United States confirmed that the North Korean missile was indeed intercontinental. Moreover, the it can carry a nuclear warhead. The USA and South Korea conducted an emergency missile drill in a response. Yet the yen did not react to the news, and analysts speculated that markets got used to North Korean missile tests, and the Japanese currency will not get a safe haven bid unless the situation escalates further.

USD/JPY gained from 113.27 to 113.54 as of 9:18 GMT today, bouncing from the daily low of 112.82 and trading near the highest level since May 16. EUR/JPY rose from 128.52 to 128.78.

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