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10 August 2017, 01:30 | Rufus Hill
Getty Images Mark Wilson
The dollar remained weak throughout Tokyo morning trading, weighed down by geopolitical risks stemming from Trump's vow on Tuesday to respond to North Korea with "fire and fury" if it continues to threaten the United States.
"The goal of the German government is to avoid a further military escalation and to settle the conflict in the North Pacific peacefully", said government spokeswoman Ulrike Demmer.
North Korea says it is examining its plans for attacking Guam to contain USA bases there.
North Korea has been rapidly revving up its nuclear and missile programme after it successfully test fired its first inter-continental ballistic missile last month which according to experts was a new type unlike the previous North Korean missile tests and with a range of over 8,000 km.
The president's extraordinary comments had already pushed US stocks into negative territory on Tuesday afternoon.
Benchmark U.S. Treasury yields spiked higher following the jobs data but pared gains after Trump's remarks on North Korea.
"More broadly, it's for the worldwide community, to have them understand that when we call for sanctions and when we're pressing for sanctions, the goal is not to try to collapse North Korea, but to compel them to come back to the negotiating table", Cha said.
As NPR's Merrit Kennedy reported Monday, North Korea reacted angrily to the sanctions, saying it would "balance the U.S.'s felonious crime" with "something thousands of times worse".
Pyongyang launched its second ICBM in late July in a test that demonstrated the potential to reach the US. The U.S. calculated last month that up to 60 nuclear weapons are now controlled by North Korean leader Kim Jong Un.
Warning of "fire and fury", President Donald Trump answered North Korea's threats with rhetoric the nuclear-armed nation might appreciate.
In another statement citing a different military spokesman, North Korea also said it could carry out a pre-emptive operation if the U.S. showed signs of provocation.
If the North calls Trump's bluff and conducts more missile launches or nuclear tests, Trump will be under added pressure now to deliver a forceful American response.
On Monday, two US B-1 bombers flew from Guam over the Korean Peninsula as part of its "continuous bomber presence", a United States official said, in a sign of the strategic importance Guam holds.
Pyongyang says its intercontinental ballistic missiles (ICBMs) are a legitimate means of defense against perceived United States hostility.
"I take exception to the President's comments because you've got to be sure that you can do what you say you're going to do", the Arizona Republican said in an interview with Phoenix radio station KTAR.
Many analysts believed it would be years before the country's weapons scientists could design a miniaturised nuclear warhead.
North Korea's ICBM tests last month suggested it was making technical progress, Japan's annual Defence White Paper warned.
"The North Korea issue has been ongoing for a few years, so I think investors seem not to be too bothered by this kind of development", said Pu Yonghao, chief investment officer at asset management firm Fountainhead Partners in Hong Kong.
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