© Reuters. Euro, Hong Kong dollar, US dollar, Japanese yen, British pound, and Chinese 100-yuan Bank notes are seen in an image figure
By Shinichi Saoshiro
TOKYO (Reuters) — The yen stood upright on Tuesday, as tensions on the Korean Peninsula flared up anew in the midst of an escalating war of words between North Korea and the United States, while the euro struggled near a four-week low against the dollar.
The dollar was stable at 111.760 yen to come from a height of 112.530 the previous day.
The euro was also little changed, at 132.460 yen (EURJPY=) and the deletion of more than 1% overnight.
The Japanese currency made sharp gains after North Korea’s foreign Minister Ri Yong-Ho said on Monday that President Donald Trump had declared war on the country, and that Pyongyang reserved the right counter-measures to take, including shooting down US bombers, even if not in its air space.
Japan is tilting the world’s largest creditor nation and dealers to take on Japanese investors would. the repatriation of capital in times of crisis, the increase in the value of the yen Many questions, however, when Japanese asset values would stay truly in the favor of, if an actual war broke out in Asia.
The Swiss franc, but also trying to, in times of geopolitical tension, stood at 0.9663 francs per U.S. dollar after gaining 0.3 percent overnight.
«The dollar tends to be flare ups fall in North Korean Affairs, but whether the Federal Reserve may hike interest rates in December, as it remains projected, still the ultimate decision,» said Shin Kadota, senior strategist at Barclays (LON:BARC) in Tokyo.
The immediate focus was on what views could be expressed by the Fed Chairman Janet Yellen, who is due to speak in Cleveland in the years 1645 (GMT),» inflation, uncertainty and monetary policy.»
The euro was 0.1 percent higher at $1.1856 in the vicinity of $1.1832, the lowest level since Aug. 31 explored the previous day, as it fell nearly 1 percent.
The common currency took a hit after German Chancellor Angela Merkel won in their country’s elections over the weekend, but saw a large piece of the support shift to the far right.
The Euro faced additional pressure after the European Central Bank President Mario Draghi singled out currency volatility as a source of uncertainty, the required monitoring and argues that «adequate» ECB accommodation was still needed, since a premature and hasty step, unravel, could, of his work.
«The euro had risen, in a fast pace, and the ECB is sending is now said cautious signals that weigh on the euro,» Kadota at Barclays.
The euro rose to a 2-1/2-year high of $1.2092 on Sept. 8 on hopes that the ECB will begin the dismantling of its huge monetary easing scheme sooner rather than later.
The new Zealand dollar extended the previous day’s slide, and was last down 0.15 percent at $0.7256 .
The kiwi dropped 1 percent overnight after New Zealand Prime Minister Bill English National Party the largest number of votes on Saturday in the election but won enough seats to rule completely, leaving the investors likely to be weeks of political horse-trading faces, before a government is formed. [AUD/]
The dollar index against a basket of six major currencies, was a shadow deeper to 92.610 (DXY), following a rise of 0.5 percent the previous day on a three-week high of 92.724.