The U.S. dollar has been traded mixed against the majors on Thursday and early Friday. It dropped sharply versus the Swiss franc and the Japanese yen, while it extended its gains against the New Zealand dollar and the Australian dollar.
The drop of the commodity currencies is coming from fears that the ongoing geopolitical turmoil will begin an economic confrontation with China. China is by far North Korea’s largest trading partner, accounting for approximately 85% of the overall volume according to data from 2015 in United Nations Comtrade database. The U.S. Senator Chris Van Hollen said to China that they have a choice whether they will do business with North Korea or do business with the U.S. but they can't do both. China is also a large trading partner for the U.S.
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