Yen weakens on reports of N Korea missile launches

TOKYO - The yen slid against the US dollar and euro on Wednesday, after reports that North Korea launched several missiles early in the morning, including a long-range missile that appeared to fail in flight.

The yen slipped to 115.10 to the dollar from around 114.55 in late European trade. US markets were closed on Tuesday for the Independence Day holiday.

Against the euro, the yen fell to all-time lows around 147.20 to the single currency after trading around 146.65 late in London.

"The North Korea missile tests will be a negative for the yen, but neither the tests nor the timing on the US holiday will be too much of a surprise," said Tony Morriss, senior currency strategist at ANZ Investment Bank in Sydney.

He noted only one of the tests was of the long-range variety that has caused international concern, and that reportedly failed in flight, so any impact should be short-lived.

"This might see the Nikkei consolidate on recent gains, aided by the return to improved risk appetite in commodities and peripheral markets," he added.

Tokyo's Nikkei share average rose 0.4 per cent on Tuesday to 15,638.50, its highest close since June 5.

- REUTERS

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