The Japanese yen was once again surpassed by a much stronger U.S. dollar on Tuesday. The easing of the tension between United States and North Korea has made the greenback fully escape a 4-month low it touched last week.
On the previous week, the U.S. dollar dropped to its lowest level since June 14 against the Japanese yen at 108.72 yen. However the greenback is currently 0.4 percent higher versus yen.
Kim Jong-un said on the day that he will first observe the possible actions of United Sates for a while longer before considering its plans to fire a missile on the U.S. Pacific territory of Guam, according to North Korea’s official news agency.
OANDA’s head of trading in Asia-Pacific Stephen Innes suggested that the rhetoric is somehow easing and the market looks like it was sort of leaning towards that direction. Innes is referring to the easing worries of investors on the geopolitical tension surrounding the Korean Peninsula.
According to some traders, the dollar was also highly supported on the interview of U.S. Federal Reserve President in New York William Dudley with the Associated Press which suggested that Dudley will be in favor of one more rate hike this 2017, only if the economic health of U.S. will turn out just the way he forecasted.
Meanwhile in other currencies, another safe haven Swiss franc eased more than 0.1 percent against the dollar at 0.9725 francs. It extended its declines against the greenback following its 1.1 percent drop on the previous day.