Dollar firm

Hot Now Bob Takai

SINGAPORE: The dollar inched higher versus the yen on Friday, regaining its footing after taking a hit when North Korea fired a missile over Japan into the Pacific Ocean.

The dollar last stood at 110.37 yen, up 0.1 percent on the day, a recovery from the intraday low of 109.55 yen set in early Asian trade on Friday when it came under pressure as the yen edged higher following reports of North Korea´s missile launch.

North Korea fired a missile on Friday that flew over Japan´s northern island of Hokkaido far out into the Pacific Ocean, South Korean and Japanese officials said, further ratcheting up tensions after Pyongyang´s recent test of a powerful nuclear bomb.

Japan is the world´s largest net creditor nation, and at times of uncertainty traders assume Japanese repatriation of overseas funds will eclipse foreign investors´ selling of Japanese assets.

As a result, the yen has continued to operate as a safe-haven currency despite Japan´s geographical proximity to North Korea.

While financial markets may stay jittery for now, the overall market reaction to North Korea´s missile launch will probably prove short-lived, market participants said. —