SINGAPORE (Reuters) – The dollar held steady against the yen on Monday, having retreated from 12-week highs set last week, due to renewed focus on geopolitical risks amid concerns that North Korea may be preparing another missile test.
North Korea is preparing to test a long-range missile, which it believes can reach the west coast of the United States, a Russian lawmaker who had returned from a visit to Pyongyang was quoted by Russia’s RIA news agency as saying on Friday.
The renewed focus on geopolitical tensions helped lend support to the safe haven yen, and helped pull the dollar down from its post-U.S. jobs data highs.
On Friday, the dollar was already in retreat due to profit-taking, when the North Korea-related headlines reached the market, exacerbating the greenback’s drop, said Stephen Innes, head of trading in Asia-Pacific for Oanda in Singapore.
“Asia is going to really sit back and just see how this is going to play out, keep on the headline watch,” Innes said. “This market’s very, very jumpy.”
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