The U.S. dollar weakened against its Japanese counterpart on Monday morning. It dropped more than 0.3 percent against the yen closing at ¥ 109.22 it stood at 109.87 on the previous trading day. Euro was also sluggish versus the yen as it edged lower by 0.2 percent closing at ¥ 130.59.
Following a powerful nuclear test from North Korea, investors reduced their exposure to risky assets and decided to go long on the safe-haven yen.
Pyongyang said the nuclear test was a hydrogen bomb that can be installed on a long- range missile. As a response, U.S. President Donald Trump threatened cut off trade with any nation that does business with North Korea.
The price of gold reached its highest level since November 9 on Monday. This was after investors shifted to safe-haven buying following the nuclear test from North Korea.
U.S. gold futures advanced by 0.8 percent to settle at $1,340.90 an ounce for its December delivery. Spot gold was also 8 percent higher to close at $1,335.31 an ounce as it hit a 10-month high during the day.