This weekend, North Korea confirmed that it had indeed conducted nuclear weapons testing. Forex markets responded by pummeling the Japanese Yen, for no particular reason other than the proximity of Japan to North Korea. It is clear that the North Korean diplomatic crisis will not exert any effect, positive or negative, on the Japanese economy. Nonetheless, as is often the case, the markets needed something to trade on, and figured a political crisis would provide the impetus to bring the Japanese Yen lower against the USD. Forex TV reports:

“Being anywhere near the Korean peninsula this weekend is not something the foreign exchange market relishes – the yen is underperforming in that situation.”

Read More: Yen continues fall vs dollar on NKorea concerns