Fears that tensions between North and South Korea could escalate further have pushed the US dollar to a seven-week high against the yen and a two-month high against the euro. Investors are scurrying for the safety of the dollar in response to a comment from North Korea warning that the planned naval actions by South Korea and the US have pushed the region “closer to the brink of war”.
Ã¢â‚¬Å“The statement from North Korea only adds to tensions, and that leads to safe-haven demand for the dollar,Ã¢â‚¬Â said Simon Derrick, chief currency strategist at Bank of New York Mellon Corp. in London. Ã¢â‚¬Å“ItÃ¢â‚¬â„¢s very much a risk-off day. If investor confidence continues to crumble, then the euro could be between $1.27 and $1.30 by the end of the year.Ã¢â‚¬Â