The Korean won tumbles as North Korea doubles down on its threat of a nuclear strike near Guam

The Korean won tumbled again Thursday amid ongoing elevated geopolitical tensions in the region.

The won closed down by 0.7% at 1,143.30 per US dollar after North Korea’s army reiterated its threat to launch nuclear-capable missiles near Guam.

A statement from North Korea’s army, translated by South Korea’s Yonhap News, says North Korea is “seriously examining the plan for an enveloping strike at Guam through simultaneous fire of four Hwasong-12 intermediate-range strategic ballistic rockets in order to interdict the enemy forces on major military bases on Guam and to signal a crucial warning to the US.”

Thursday’s slide follows a 0.9% drop on Wednesday. The won is now trading around levels last seen in early July.

“The net impact is to lift the US dollar, yen, and gold [while] South Korea bears the brunt of the adjustment,” said Marc Chandler, global head of currency strategy at Brown Brothers Harriman.

“It is difficult to walk back the saber-rattling rhetoric,” he added.

As for the rest of the world, here’s the scoreboard as of 8:04 a.m. ET:

  • The euro is down by 0.3% at 1.1728 against the dollar. French industrial production slumped 1.1% in June, below expectations of a 0.5% dip, according to the latest figures.
  • The British pound is little changed at 1.2997 against the dollar after data showed that manufacturing production in June was unchanged, and industrial production rose by 0.5% in June, above forecasts of 0.1%.
  • The US dollar index is up by 0.2% at 93.73.
  • The Japanese yen is up by 0.2% at 109.81 per dollar.

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