Is JPY Really a Safe Haven on This Occasion?

It’s a conundrum: Despite Japan being a likely target of freshly erupting North Korean ire, traders still see the yen as a safe-haven play, and they’re pushing the currency higher.

The yen has surged, with the dollar fetching as little as 109.71 yen in Asia trade, down from 110.82 overnight. The dollar/yen was at 109.88 at 11:21 a.m. HK/SIN.

That’s in stark contrast to another country likely on the North’s target list, South Korea, which saw its currency, the won, markedly drop. The dollar was worth as much as 1,137.10 won in Asia trade on Wednesday, up from as little as 1,125.37 won earlier.

CNBC

CAC Slides as North Korea Rumbles Spook Investors

DAX Slips on North Korea Tensions

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.

Craig Erlam

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam
Craig Erlam

Latest posts by Craig Erlam (see all)