FOREX-Swiss franc yen rise as North Korea tensions brew

Reuters

* Swiss Franc up more than 1 pct against euro
    * Dollar index slips
    * Graphic: World FX rates in 2017 http://tmsnrt.rs/2egbfVh
    * Graphic: Korea tensions lift safe havens: http://reut.rs/2hIf47A

 (Updates throughout)
    By Saqib Iqbal AhmedNEW YORK, Aug 9 (Reuters) - The Swiss franc rallied hard
against the euro and the U.S. dollar on Wednesday, as increased
tensions between the United States and North Korea led investors
to look for assets deemed as less risky.
    The Swiss franc was on pace for one of the largest
single-day jumps against the euro since the Swiss National Bank
removed its cap on the currency in January 2015. The greenback
was down 1.1 against the franc, its worst drop in more than six
weeks.
    The dollar also slipped 0.26 percent lower against the yen
to 110.01 yen.
    The Swiss and Japanese currencies are often sought in times
of geopolitical tension partly because the countries have big
current account surpluses.
    Japan is the world's biggest creditor nation and there is an
assumption investors there will repatriate funds should a crisis
eventuate.
    "Obviously we are looking at the increased tensions between
the U.S. and North Korea," said Brad Bechtel, managing director
FX at Jefferies in New York.
    North Korea said on Wednesday it is "carefully examining"
plans for a missile strike on the U.S. Pacific territory of
Guam, just hours after U.S. President Donald Trump told the
North that any threat it presented to the United States would be
met with "fire and fury". [nL4N1KU6P0]
    "It's just a classic risk-off day," said Greg Anderson,
global head of foreign exchange strategy at BMO Capital Markets
in New York.
    Weaker U.S. Treasury yields also helped the yen, boosting
its appeal relative to the greenback.
    U.S. Treasury yields fell on Wednesday, with yields on the
benchmark 10-year note hitting a six-week low, as investors
reached for safe-haven assets such as government debt.
[nL1N1KV1GM]
    The dollar index <.DXY>, which tracks the greenback against
six rival currencies, was down 0.12 percent to 93.53, after
rising as high as 93.888 earlier in the session.
    Most Asian currencies stumbled, with the Korean won 
on pace for its biggest fall in nearly eight weeks. [nL4N1KV2C6]
    Worries about increased U.S.-North Korea tension also
weighed on the Canadian dollar, which weakened against its U.S.
counterpart, despite higher oil prices and
stronger-than-expected domestic housing data. [nL1N1KV0MO]
    Sterling was little changed at $1.3 and near a 2-1/2-week
low, as investors looked to key data due next week for clues on
the health of the British economy as the country prepares to
leave the European Union. [nL5N1KV63J]

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
GRAPHIC: World FX rates in 2017    http://tmsnrt.rs/2egbfVh
GRAPHIC: Korea tensions lift safe havens    http://reut.rs/2hIf47A
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Saqib Iqbal Ahmed; Editing by Meredith Mazzilli
and Lisa Shumaker)
 ((saqib.ahmed@thomsonreuters.com; @SaqibReports; +1 646 223
6054; Reuters Messaging:
saqib.ahmed.thomsonreuters.com@reuters.net))

Keywords: GLOBAL FOREX/ (UPDATE 6)
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