Markets rushed to safe havens after North Korea fired a rocket passed over northern Japan in a provocative act from Pyongyang that led to increased global tensions. The missile landed in the Pacific Ocean about 1,200 kilometers from Japanese shores.
The dollar index fell to a two-and-a-half-year low of 91.77 on Tuesday. The dollar also fell against the yen to its lowest level since mid-April at 108.32.
There was a risk aversion after the launch of these rockets, with most Asian stocks falling, and European stocks are expected to see a drop in early trading today. Japan's Nikkei fell to a four-month low.
The other beneficiary of these tensions was the yellow metal, which rose strongly to reach its highest level in nearly 9 months at 1324.46 $ per ounce. Also, investors went to US Treasuries to drop 10-year bond yields to a 2-month low of 2.122%.