Dollar Slips Under Yen, Yen Strengthened by North Korea’s Weapon Test

Dollar slips under Yen

With the controversial decision of the United States President Donald Trump, abruptly firing FBI Director James Comey; comes the dollar slipping at 0.2% against the perceived safe-haven yen on Wednesday. The dollar slipped 0.2% to 99.437, moving away from a three-week high of 99.688 and dipped against its Japanese counterpart to 113.77 yen, below its sudden high of 114.325, which was the dollar’s highest since March 15.

On the other hand, in relation to the event where U.S. President Donald Trump abruptly fired the FBI Director: James Comey, really made the Democrats immediately accused the President of acting out of political motives.

James Comey had been leading the FBI’s investigation into an alleged Russian meddling in the 2016 United States Presidential Campaign and a possible collision with Trump’s campaign. The President’s action towards Comey stirred up speculations and accusations that really left Washington shocked and baffled.

In accordance to President Trump’s actions, any United States political commotion could weigh on the dollar, as a divided Congress could derail the promised tax reform and stimulus steps which was announced before by the U.S. President.

On the other hand, Japanese yen is also reinforced with the news of reawakened fears that North Korea could be gearing up for another weapons test. Tokyo-based chief foreign-exchange strategist for Daiwa Securities: Mitsuo Imaizumi, said that the yen started to strengthen in the early morning hours of Asian Trade, which could have been the reaction of overseas markets to a North Korean diplomat’s comments.

This is related to Pyongyang’s ambassador to the UK: Chloe IL, who commented on an interview with Sky News on Tuesday saying: that North Korea is ready to conduct a sixth nuclear test. This reminded that tensions could escalate on the recently calm Korean Peninsula. On the other hand, Moon Jae-in, South Korea’s newly elected leader is expected to try to engage Pyongyang with dialogue and aid.

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