Yen Falls against Dollar amid Cyber Attack, North Korea Test


The safe haven yen fell against the U.S. dollar, who bounced back from its early losses, on Monday, ignoring another missile test by North Korea on Sunday and threats from a cyber attack that spread around the globe at the weekend.

USD/JPY was up 0.09% to 113.48 by 06.38 EDT, after dropping down to overnight lows of 113.17.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, pulled back a little  0.26% at 98.79. Weak U.S. data Friday dampened the outlook for the pace of further U.S. tightening this year.

The yen went higher overnight after North Korea confirmed that it had carried out a mid-to-long range missile test on Sunday.

The test was a significant advance in North Korea’s drive for an intercontinental ballistic missile capable of carrying a nuclear warhead and reaching the U.S. mainland.

North Korea’s statement over the weekend that its latest missile test can carry a large nuclear warhead worried investors at the start of a new trading week and provided a minor increase to the Japanese Yen’s safe-haven appeal. Investors were also cautious amid fears that a weekend cyberattack that hit businesses, hospitals and government agencies in at least 150 countries around the world is probably rising.

The dollar had declined last Friday after data showing that U.S. retail sales grew less than expected last month and core inflation dropped raised concerns over the economic viewpoint.

Ahead, China reports fixed asset investment with a 9.1% gain seen for April year-on-year, industrial production with a 7.1% rise seen and retail sales with an increase of 10.6% expected.

Later this week, the U.S. will report on building permits, housing starts, industrial production and jobless claims for fresh indications on the strength of the economy. Japan is to report on first quarter growth and the UK is to produce what will be carefully watched data on inflation, employment and retail sales amid signs that the headwinds from Brexit are rising.

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