The dollar briefly jumped against the yen in Asian trading Wednesday after North Korea launched a rocket seen by many in the international community as a disguised ballistic missile test. The greenback rose to 82.63 yen from 82.51 yen in New York late Tuesday, while it slipped against the euro to $1.3006 from $1.3003. But the greenback quickly settled back to 82.52 yen shortly after Pyongyang’s much-criticised launch.
“The market appears to be reacting to the news, but I doubt the sustainability of the rally,” Mizuho Securities forex strategist Kengo Suzuki told Dow Jones Newswires. Regional share markets were unmoved by the news from North Korea, with almost every bourse in positive territory. The launch comes as Japan prepares to hold weekend elections widely expected to see Prime Minister Yoshihiko Noda’s government toppled by main opposition leader Shinzo Abe and his Liberal Democratic Party. The yen has been weakening recently on speculation that Abe would follow through on vows to pressure the Bank of Japan into launching more aggressive easing measures to boost the world’s third-largest economy.
Dollar briefly up against yen after N Korea launch
