Dollar Recovers Against JPY After North Korea Fears Drop

The U.S. dollar advanced on Monday, rallying against the Japanese yen in particular as concerns over North Korea abated and traders looked ahead to the meeting this week of Federal Reserve policy makers.

The dollar rose the most against the yen USDJPY, +0.50% fetching ¥111.47, compared with ¥110.83 late Friday in New York. That was the highest yen level for the greenback since late July, according to FactSet data.

Meanwhile, the ICE Dollar Index DXY, -0.01% that measures the greenback against six of its rivals, rose 0.1% to 92.926, on track to break a two-session losing run.



The move out of the Japanese currency—considered a haven asset—came as tensions between the U.S. and North Korea were seen as easing over the weekend with no new aggressions from the isolated regime.

Still, the tensions with Pyongyang could easily make headlines again as the week goes on, as the United Nations General Assembly is set to meet today.

via SOURCE

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza