18/04/2017 08:18 AST

The dollar fell to a five-month low against the yen on Monday as rising tensions over North Korea stoked demand for the safe-haven Japanese currency.

The US dollar retreated to 108.14 yen, its lowest since mid-November before recovering some ground to trade down 0.13 at 108.47 yen.

"We are seeing once again a little bit of a flight to safety as a result of the news over the weekend of North Korea's attempted missile test. That's resulting in a little bit of a weakness in the US dollar," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington.

The euro and the pound slid to five-month troughs of 114.87 yen and 135.63 yen, respectively, before reversing course to trade slightly higher against the yen.

Tensions on the Korean peninsula have escalated as US President Donald Trump takes a hard rhetorical line with North Korean leader Kim Jong Un, who has rebuffed admonitions from China and proceeded with missile tests.

North Korea launched a ballistic missile on Sunday but it blew up almost immediately. US Vice President Mike Pence put North Korea on notice on Monday, warning that recent US strikes in Syria and Afghanistan showed that the resolve of President Donald Trump should not be tested.

The demand for other safe haven assets also picked up and gold hit a five-month high on Monday.

Rising geopolitical tensions in North Korea sent US Treasury yields to five-month lows overnight as increased geopolitical tensions in North Korea hurt risk sentiment and weak economic data boosted demand for the bonds.

"That's keeping the overall tone of the dollar somewhat depressed here," Esiner said. The dollar index, which measures the greenback against a basket of six major currencies, was down 0.41 percent at 100.15.

The Turkish lira rallied over 2 percent against the greenback after President Tayyip Erdogan won a narrow victory in a referendum granting him sweeping powers.

The lira traded at 3.6636 against the dollar early on Monday, surrendering some of the gains which it made overnight.100.15


Business Recorder

Ticker Price Volume
QNBK 123.10 227,432
SABIC 98.10 636,118
PETRORABIGH 13.28 553,297
TAWUNIYA 96.90 61,416
BURUJ 31.40 85,833
SFICO 29.65 11,333
SAPTCO 14.24 35,738
US Dollar 1.00
Saudi Riyal 3.75
Derham Emirati 3.67
Qatari Riyal 3.75
Kuwaiti Dinar 0.30
Bahraini Dinar 0.38
Omani Riyal 0.39
Euro 0.84
British Pound 0.76
Japanese Yen 109.79
Pound could slide to $1.10 on no-deal Brexit scenario

17/10/2017

he risk of a no-deal Brexit is playing on investors’ minds. The European Union is likely to confirm this week that Brexit talks have not made sufficient progress to move onto discussions about a fut

Gulfnews

Dollar heads for worst week in five as stocks cheer record streak

15/10/2017

World stocks advanced for a fourth straight day on Friday on expectations of broad-based global growth, while the dollar was on course for its worst week in five as investors awaited US inflation dat

Gulfnews

Pound falls as October blues provoke memories of flash crash

09/10/2017

October blues are starting to weigh on the pound — again. Sterling is headed for its worst week in a year as questions swirl about whether Theresa May will stay or go, even as the prime minister sai

Gulfnews

Dollar lower or steady at best over the coming year: Reuters poll

06/10/2017

Most major currencies will hold on to their gains made in 2017 against the dollar over the coming year, according to a Reuters poll of currency strategists who were not entirely convinced of the U.S.

Reuters

Dollar Gains Before Payrolls; Europe Stocks Drop: Markets Wrap

06/10/2017

The dollar extended gains to an almost three-month high and Treasury yields rose as confidence in the world’s largest economy grows in the buildup to the latest jobs data. European shares edged lower

Bloomberg