Yen Becomes a Winner in the Forex Market as Global Tension Increases
By Anatol Thomas
The global political events always have a great impact in the forex market. After facing a tough time against the US dollar in the past few months, Yen gained against the dollar, reaching its five-month high on Wednesday. The geopolitical tension in the global countries has resulted in decreased risk appetite in the forex market. Investors look for safe haven and Japanese Yen benefitted from the market outlook.
The military action of the USA against Syria and North Korea has raised the concerns of the investors. The French presidential election also doesn’t have a friendly candidate in the forefront. So, investors want to invest in less risky assets. The Yen proved to be a safe bet against all the political odds. The USD/JPY pair was traded at 109.35, which is the lowest value since November.
Xi Jinping, the President of China has talked with Donald Trump on phone to find a peaceful solution for the increasing North Korean tension. Trump has asked China to rein in North Korea as rumors suggest that North Korea is planning for nuclear missile testing soon. Trump has also said that the US will take action against North Korea, even if Beijing is not supportive.
There were tensions between Russia and USA that have intensified after US’s attack on Syria last week. Rex Tillerson, Secretary of State of the USA is all set to travel to Russia, which is expected to bring down the diplomatic risk.
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