USDJPY Springs Back to Life

SINGAPORE (Reuters) – The dollar edged higher against the yen on Tuesday, pulling away from a recent four-month low, as concerns over tensions between the United States and North Korea eased for now, supporting risk appetite.

North Korea’s said he will watch the actions of the United States for a while longer before making a decision on a threatened missile strike near Guam, the North’s official news agency said on Tuesday.

“The rhetoric is easing. I think the market was sort of leaning that way anyway,” said Stephen Innes, head of trading in Asia-Pacific for OANDA in Singapore, referring to an easing in investor concerns over the tensions between the United States and North Korea.

Traders said the greenback also gained a lift after New York Fed President William Dudley said in an interview with the Associated Press that he would be in favor of another interest rate hike this year if the economy evolved in line with his expectations.

The dollar rose 0.4 percent to 110.04 yen JPY=, pulling further away from a near four-month low of 108.72 yen set on Friday.

The safe haven Swiss franc eased, with the dollar gaining about 0.1 percent to 0.9725 CHF= francs. The Swiss franc extended its losses after shedding about 1.1 percent against the dollar on Monday, its biggest daily fall since July 27.

Reuters

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Senior Currency Trader and Analyst at OANDA
Stephen has over 25 years of experience in the financial markets and specializes in Asian currencies at OANDA. After having started his trading career with NatWest Bank, he is currently based in Singapore as a Senior Currency Trader and Analyst with OANDA, focusing on the movement of the Aussie Dollar and ASEAN Currencies. Stephen has an extensive trading experience in Interest Rate Futures, Money Markets and Precious Metals. Prior to joining OANDA, he worked with organizations like Cambridge Mercantile, Nat West, Garvin Guy Butler, Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes
Stephen Innes

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