* Regional tension mounts after Pyongyang's missile test
* Yen advances to 5-month highs vs dollar, euro, sterling
(New throughout, updates prices and market activity to U.S.
market open; new byline, changes dateline, previous TOKYO)
By Saqib Iqbal Ahmed
NEW YORK, April 17 The dollar fell to a
five-month low against the yen on Monday as rising tensions over
North Korea stoked demand for the safe-haven Japanese currency.
The U.S. dollar retreated to 108.14 yen, its lowest
since mid-November before recovering some ground to trade down
0.13 at 108.47 yen.
"We are seeing once again a little bit of a flight to safety
as a result of the news over the weekend of North Korea's
attempted missile test. That's resulting in a little bit of a
weakness in the U.S. dollar," said Omer Esiner, chief market
analyst at Commonwealth Foreign Exchange in Washington.
The euro and the pound slid to five-month troughs of 114.87
yen and 135.63 yen, respectively, before
reversing course to trade slightly higher against the yen.
Tensions on the Korean peninsula have escalated as U.S.
President Donald Trump takes a hard rhetorical line with North
Korean leader Kim Jong Un, who has rebuffed admonitions from
China and proceeded with missile tests.
North Korea launched a ballistic missile on Sunday but it
blew up almost immediately.
U.S. Vice President Mike Pence put North Korea on notice on
Monday, warning that recent U.S. strikes in Syria and
Afghanistan showed that the resolve of President Donald Trump
should not be tested.
The demand for other safe haven assets also picked up and
gold hit a five-month high on Monday.
Rising geopolitical tensions in North Korea sent U.S.
Treasury yields to five-month lows overnight as increased
geopolitical tensions in North Korea hurt risk sentiment and
weak economic data boosted demand for the bonds.
"That's keeping the overall tone of the dollar somewhat
depressed here," Esiner said.
The dollar index, which measures the greenback
against a basket of six major currencies, was down 0.41 percent
The Turkish lira rallied over 2 percent against the
greenback after President Tayyip Erdogan won a narrow victory in
a referendum granting him sweeping powers.
The lira traded at 3.6636 against the dollar early on
Monday, surrendering some of the gains which it made
(Reporting by Saqib Iqbal Ahmed; Editing by Bernard Orr)