The dollar climbed versus the yen on Monday, trading above the previous week’s 4-month low, as heightened tensions between the United States and North Korea is seen as the key to the near-term outlook.
Along with concerns on geopolitical tensions, the greenback was under pressure on Friday following weaker-than-expected inflation data for July which reduced expectations for another Federal Reserve interest rate increase in 2017.
The dollar was 0.1 percent higher to 109.29 yen, pulling back from Friday’s low of 108.72 yen, the greenback’s weakest level since April 19.
Growing tensions between the United States and North Korea is expected to remain a focal point for markets in the near term.
The Japanese yen showed a limited reaction to latest data on Monday revealing that Japan’s economy grew at an annualized rate of 4.0 percent in April-June, the quickest pace of expansion since January-March 2015.
The dollar index stood steady at 93.096, after falling nearly 0. 3 percent on Friday.
The material has been provided by InstaForex Company – www.instaforex.com