Yen Falls as Report Says N. Korea Launched Short-Range Missile

By Yasuhiko Seki and Ron Harui

May 25 (Bloomberg) -- The yen fell against the euro and the dollar, reversing earlier gains, after Yonhap News reported that North Korea launched a short-range missile.

Japan’s currency declined versus 14 of the 16 most-traded currencies after the Korean-language news agency said U.S. and South Korean intelligence authorities were investigating the launch of the missile. North Korea said earlier today it “successfully” tested a nuclear weapon. Tokyo is 809 miles (1,295 kilometers) from North Korea’s capital of Pyongyang.

“The North Korea-related news triggered buying of the dollar” against the yen, said　Nobuaki Kubo, vice president of foreign exchange in Tokyo at BBH Investment Services Inc., a unit of New York-based Brown Brothers Harriman & Co.

The yen weakened to 133.41 per euro as of 2:24 p.m. in Tokyo from 132.67 in New York last week, after earlier rising as high as 132.07. Japan’s currency fell to 95.17 per dollar from 94.78. The dollar traded at $1.4003 per euro from $1.3998.

To contact the reporters on this story: Yasuhiko Seki in Tokyo at yseki5@bloomberg.net; Ron Harui in Singapore at rharui@bloomberg.net.
Last Updated: May 25, 2009 01:30 EDT