Financial markets have had only a muted reaction to the dispute in recent months, but on Friday assets regarded as havens for investors jumped immediately after the news of North Korea’s latest H-bomb threat. The Japanese yen firmed as much as 0.5 per cent to ¥111.96 per dollar. Gold was also 0.5 per cent stronger at $1,297.09 per ounce.

(Source: Financial Times)

I thought Yen would grow weaker, but on the contrary it grew stronger, why?

  • $\begingroup$ Because it's considered a safe haven. See here. $\endgroup$ – luchonacho Sep 22 '17 at 15:46
  • $\begingroup$ Consider also that the NK saber-rattling increases the likelihood of the US military spending additional money in Japan. $\endgroup$ – Hot Licks Sep 22 '17 at 21:27
  • $\begingroup$ Notice that the flagging as duplicate is to make you aware of such other question, and edit your question making clear why yours might not be a duplicate (if so). $\endgroup$ – luchonacho Sep 23 '17 at 6:50