The Yen are in cloud 9 as it hits five-month highs against the green back, euro and sterling in today’s session (Wednesday), as frictions geopolitical tension continue spark risk appetite and put the safe-haven Japanese currency on favor.
Investors’ usual go-to underpinned traditional safe-havens like the yen, Treasuries and gold, amid the fresh concerns about the French presidential elections and a possible U.S. military action against Syria and Korea.
Masashi Murata, senior strategist at Brown Brothers Harriman in Tokyo, stated that "Direct demand for the yen driven by flight-to-safety, rather than bids generated by lower Treasury yields, characterises the latest move,"
The dollar was at 109.465 yen after going as low as 109.350, which is its weakest since Nov. 17. The Green back slid further down by more than 1 percent from its highs of 110.920, with the 110.00 threshold being breached after close calls over the past few weeks.
The euro sank more than 1 percent overnight, which extended losses and touched a five-month low of 116.020 yen. While North Korea state media issued a warning that a nuclear attack on the U.S. would be inevitable if there is any sign of American Aggression, while The U.S. president, Donald Trump is unthreatened as he tweeted that Pyongyang was “looking for trouble” and the United States will be able to solve this problem “with or without the help form China.”