The US Dollar dipped versus the Japanese Yen and edged toward the 4½ month trough struck last week. Analysts put the blame on growing concerns over North Korea’s latest missile tests and South Korea’s response to it. Moon Jae-in, the President of South Korea, said earlier today that North Korea’s provocations could result in an unpredictable outcome for the Korean peninsula. North Korea’s response to that was a warning for the US that they were prepared for further strikes.
As reported at 11:58 am (BST) in London, the USD/JPY was trading at 108.744 Yen, down 0.01% and off the session trough of 108.430 Yen; the pair’s peak was at 108.844 Yen. The GBP/JPY was also lower at 141.656 Yen, a loss of 0.07%; the pair has ranged from a low of 141.340 Yen to a peak of 141.884 Yen in today’s session.
Dollar Lower after Brainard Comments
The US Dollar is under broad pressure after one member of the Federal Reserve’s voting council, Lael Brainard, said that the current inflation rate was well off the Fed’s target. She also said that the central bank should be wary of raising rates too quickly in such an environment. The Fed will be meeting later this month at the Summary of Economic Projections after which a statement by the Chairman, Janet Yellen, will be rendered.