North Korean Nuclear Test Spurs Risk Aversion, Rand Suffers

The South African rand dropped today after the North Korean nuclear weapon test increased geopolitical tension, making investors seek safety and avoid riskier assets.

North Korean performed an underground test of nuclear weapon, defying the United Nations. The Korean Central News Agency said that the test was successful. The resulting worries hurt the risk sentiment, and the assets associated with risk suffered as it often happens when political problems occur.

USD/ZAR rose from 8.9100 to 8.9606 as of 15:22 GMT today and its daily high was at 8.9913.

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