Yen Soars to Two-month Highs versus Dollar As U.S.- North Korea Tensions Escalate
Aug, 11th 02:07
Asian shares tumbled on Friday, extending a global stock sell-off after a U.S. slump overnight. Tensions ramped up between the U.S. and North Korea, causing investors to flee into less risky assets such as the Japanese Yen.
The Yen gained ground versus the U.S. dollar on Friday, sending the pair USDJPY lower for a fourth session in a row. Overnight, Wall Street closed sharply lower with the Nasdaq dropping 2.1 percent while the S&P 500 and the Dow Jones Industrial Average pulling back 1.4 percent and 0.9 percent, respectively.
Escalating tension between the U.S. and North Korea continued to dominate sentiment in financial markets after U.S. President Donald Trump on Thursday warned Pyongyang against attacking U.S. Pacific territory of Guam or U.S. allies. Earlier this week, North Korea announced that it is “carefully examining” plans for firing a ballistic missile toward Guam.
Stocks tumbled in Asia with MSCI’s broadest index of Asia-Pacific shares outside Japan shedding 0.6 percent in its third session of declines. The stock benchmark index looked set to close the week 1.5% lower. Investors headed for havens like Yen in times of geopolitical tension as Japan is the world’s biggest creditor nation and it has big current account surpluses.
The pair USDJPY lost 0.12 percent to trade at 109.07 yen – the lowest level since June 14th – in the first half of Asian trading session.
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