North Korea missile launch: Dollar hits rock bottom, Euro gains

Dollar index hits lowest since May 2016, dropping to a four-month low against the yen at an early stage on Tuesday. Yen, Swiss franc gain, after N.Korea fires ballistic missile. Whereas, Euro continues to probe 2-1/2-year highs vs. dollar.

The dollar was down 0.55% at 108.660 yen subsequent to hitting 108.330, its lowest since April 18.

A hazard loath inclination won in the district following the rocket dispatch (- the most recent demonstration of incitement by Pyongyang that has increased pressures in the locale over the previous month), with Japan’s Nikkei tumbling to a four-month low. The dollar had also further weakened  after Tropical Storm Harvey paralysed Houston, Texas.

The yen tends to profit amid times of geopolitical or money related worry as Japan is the world’s greatest creditor country and there is a suspicion that Japanese financial specialists will repatriate assets should an emergency appear.

“Based on past patterns in which the yen has gained on such incidences, speculators reacted immediately to the North Korean missile headlines, taking dollar/yen to the intraday lows,” said Mitsuo Imaizumi, chief FX strategist at Daiwa Securities.

“But dollar/yen trimmed some of the losses after the reports that the missile actually flew over northern Japan.”

The dollar was at that point on edge, especially against the euro, after Federal

Reserve Chair Janet Yellen did not say money related approach at a national financiers’ summit in Jackson Hole a week ago, and as European Central Bank President Mario Draghi’s kept away from talking down the euro at a similar meeting.

The dollar file against a bushel of six noteworthy monetary standards was unfaltering at 92.274 in the wake of slipping as low as 92.137, its weakest since May 2016.



North Korea confirms the test-firing of ballistic missiles

North Korea confirmed on Wednesday that the three ballistic missiles it tested a day earlier were mock nuclear-missile attacks carried out as part of a simulated pre-emptive attack on ports and airfields in South Korea, reported WSJ.
Test-firing of the missiles was in gross violation of the resolutions as North Korea is prohibited from developing ballistic missile technology as per UN resolutions. The test firing could be seen as a resentful reaction to the deployment of US missile defence system in South Korea under which around 30,000 American troops were posted in South Korea.
The three missiles were launched from Hwangju. One flew 500 kilometers (311 miles) and the other 600 kilometers (373 miles) before it crashed into the sea off the country’s East coast, as per a South Korean military statement, which said that the third missile’s trajectory was still being examined.
Korean Central News Agency (KCNA), which is North Korea’s official news agency, reported that the exercise was supervised by Kim Jong Un himself.
“The drill was conducted by limiting the firing range under the simulated conditions of making preemptive strikes at ports and airfields in the operational theatre in South Korea where the US imperialists nuclear war hardware is to be hurled,” stated KCNA.
 UN Secretary-General Ban Ki-moon said that the test was ‘deeply troubling’ and undermined efforts to reduce tension on the Korean peninsula, as reported in The Tehelka.

Russia Hits Islamic State with Submarine-launched Missile for the First Time

Russian Missile story

Image Source: Russian Defence Ministry

Russian Defence Minister, Sergei Shigou said on Tuesday that Russia had hit Islamic State (IS) with missile launched via submarines for the first time from the Mediterranean. “We can say with complete confidence that fairly serious damage was done to weapons stores and a factory for preparing mines and, naturally, oil infrastructure,” he said.

The Caliber missiles, which had been fired from the Rostov-on-Don submarine, targeted two large terrorist positions in the Syrian city of Raqqa – which is an IS stronghold. Shigou said that Syria and the United States were kept in loop about the former’s attack plans.

Over the past three days, close to 300 sorties had been flown from Russia and over 600 targets of various types had been struck. Furthermore, on President Putin’s orders, bombers flying over Syria were being accompanied by fighter jets.

Russia made a direct intervention into the Syrian civil war earlier this year in September, when President Putin agreed to extend support to his Syrian counterpart Bashar-Al-Assad in their war against terrorism.

Sources: Reuters:

Daily Mail:

MH-17: UN unanimously agrees crash site be granted international access

Picture Courtesy – The Economic Times
The U.N Security Council has come to terms in a unanimous decision that the area where flight MH-17 was brought down by the missile killing all of the 298 people be granted international access. It suggested that there be a “full, thorough and independent international investigation.”

The resolution has called for the pro-Russia separatists to not just allow admittance to the site of the crash but has also demanded that the armed groups who are at the area should not disturb the debris or the body remains of the victims. All the 15 members approved of the measure taken up initially by Australia, including a reluctant Russia, who were more in favour of handing over the issue to the International Civil Aviation instead.

U.S ambassador Samantha Power has thrashed out against the manner in which Russia has responded stating, “Russia’s silence since Thursday sent a message to the illegal armed groups it supports: We have your backs. We are not naïve: if Russia is not part of the solution, it will continue to be part of the problem.”

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