The U.S. dollar tumbled on Friday on a report that North Korea is preparing to test a long-range missile, overturning earlier gains after the governments jobs report for September showed an unexpected rise in wages.
RIA news agency cited a Russian lawmaker's making comments on the missile test, which North Korea believes can reach the U.S. West Coast.
The market is getting more nervous about the prospect of some kind of a conflict, said Boris Schlossberg, managing director of FX strategy at BK Asset Management in New York. If they do something over the weekend, even if its a mild test, Im sure were going to open up a with little bit of risk aversion on Monday.
The dollar earlier rose to a more than two-month high against the yen and seven-week high against the euro as wage data from the September labor market report was seen as a sign of potentially improving inflation.