The dollar fell against the yen, as the conflict between the United States and North Korea continues. The USD/JPY changed hands at 108.94, down 0.23 percent.
Dollar began to plunge against yen after U.S. President Donald Trump sent another message to North Korea. The Asian nation led by Kim Jong-un recently threatened that it will fire missiles towards the U.S.' allies and territories near Guam.
In Trump’s first tirade, he stated that North Korea will be met with “fire and fury” if it pursues its plans. On Thursday, Trump said it is possible that his previous statement “wasn’t tough enough.” He added that it is time for somebody to stand up to North Korea.
In Trump’s recent remarks, he also issued a warning to North Korea. The 71-year-old is confident that Kim would not be threatening the allies of the U.S. in Asia like Japan and South Korea.
The United States’ war of words with North Korea also led to the dollar falling against other currencies aside from the yen.
EUR/USD is down 0.17 percent to 1.1751, while GBP/USD is at 1.2966, down 0.08 percent. USD/CAD and AUD/USD are also down, USD/CAD is at 1.2736 (-0.06 percent) and AUD/USD is at 0.7849 (-0.33 percent).
There is good news, however, as the U.S. Dollar index added 0.12 percent to 93.41. This suggests that the currency is starting to recover following the events that occurred between the U.S. and North Korea this week.
China Comments on U.S.-North Korea Conflict
An editorial from the Global Times explained what China might do when either North Korea or United States launches nuclear missiles first. China, which is an ally of North Korea, is currently being monitored by the U.S. because of alleged unfair trade practices.
According to the article, China will remain neutral if North Korea strikes first and the U.S. retaliates. However, if the U.S. and South Korea will be the instigators, China is going to interfere.
China is disinterested in any nuclear warfare, but if the status quo on the Korean Peninsula changes and the country’s interests will be affected by the potential war, then the country will be involved.
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