CURRENCIES: Yen Rises Against Dollar After North Korea's Missile Test, But Gain Pared

Gold also heads higher on haven demand

The U.S. dollar pared its loss against the yen Tuesday, with the greenback having been pushed lower as news of North Korea's missile testing prompted haven bids for Japan's currency.

The slight recovery for the dollar helped lift the ICE Dollar Index , which measures the greenback against a basket of six rival currencies, by 0.1% to 96.29.

The buck was buying Yen113.15 after falling to an intraday low of Yen112.74, according to FactSet.

Investors snapped up the yen after North Korea said it successfully test-fired its first intercontinental ballistic missile ( That claim could fuel tensions between Pyongyang and the rest of the world.

The currency pair on Monday settled at Yen113.38 in New York.

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The hunt for haven assets on Tuesday also pushed up gold prices , which hit an intraday high of $1,226.00. Prices have since trimmed gains to 0.4% at $1,223.80.

"The market reaction to geopolitical tensions may be elevated slightly with the U.S. on public holiday for Independence Day today. However, once the moves begin to settle, the market is likely to view the rebounds on the safe haven plays such as gold and the yen as another chance to sell," wrote Richard Perry, market analyst at Hantec Markets.

The dollar index on Monday climbed 0.6% (, its biggest one-day gain since May 8, according to FactSet data. The "sharp increase in Treasury yields of the past few sessions" had been pushing the dollar higher, Perry said.

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In other moves Tuesday, the pound fetched $1.2939, not far from $1.2941 late Monday. The euro traded at $1.1349, down from $1.1365.

(END) Dow Jones Newswires

July 04, 2017 06:56 ET (10:56 GMT)