Dollar slumps, Tokyo tanks as North Korea tensions spike

Dollar slumps, Tokyo tanks as North Korea tensions spike

The exercise began hours after Japan's defense minister said the Japanese military could shoot down North Korean intercontinental ballistic missiles before they reach the US territory of Guam. Defence minister Itsunori Onodera said on Thursday's parliamentary session that a missile attack on the United States territory would breach the U.S. deterrence against an attack on Japan.

The US island territory at the epicenter of North Korean madman Kim Jong Un's nuclear threats is looking to cash in on its new-found apocalyptic fame. "Guam and Puerto Rico both, a lot of people don't even think about us".

Guam is home to about 163,000 people and a USA military base.

North Korea has announced plans to fire missiles near the USA territory of Guam. North Korea experienced several failures before a successful flight test in June past year, after which the country's leader, Kim Jong Un, declared that his nation had the "sure capability to attack in an overall and practical way the Americans in the Pacific operation theater".

Though North Korea has made a habit of threatening to destroy the USA and its Korean Peninsula allies, the report did not clearly give details of a planned attack - only that there were two consecutive tests successfully carried out in the month of July by the regime.

The commentary came after Washington warned North Korea this week it would face "fire and fury like the world has never seen" if it continued to threaten the USA with its missile and nuclear programmes.

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In a tweet, President Donald Trump warned of military action "should North Korea act unwisely", noting that the U.S.is "locked and loaded".

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"We are concerned about these threats but at the same time we also want to make sure people don't panic and go on with their lives. That calls for reinvesting into our aging infrastructure, updating our level of hospitality and inviting new airlines to open up more flights to Guam".

The current crisis escalated following reports this week that the Defense Intelligence Agency believes North Korea may have cleared a major hurdle in its weapons program by miniaturizing a nuclear warhead that could be placed on missiles capable of striking the American mainland.

"The President... I think he felt it necessary to issue a very strong statement directly to North Korea", Tillerson told CNN on Wednesday.

However, with North Korea's nuclear weapons development advancing more quickly than anticipated, experts say Seoul may have to fast-track its own schedule to get the defense system in place sooner. "The intention is to deter and contain North Korea".

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But South Korean defense officials said after the May launch that they estimated Pukguksong-2's range to be around 2,000 kilometers (1,242 miles), which would be enough to strike US bases in Japan but come short of reaching Guam.

In response to the threat, Japan said that it could intercept North Korean missiles if they are judged an existential threat to Japan. That base and a USA naval base are home to about 13,000 American military personnel.

South Korea, which fought a war alongside the United States with the North that ended in a stalemate in 1953, is highly technologically advanced and analysts estimate it could develop an atomic device within months of deciding to do so. It follows two successful tests of an intercontinental missile by the isolated state in July and a series of other missile tests.

Missile defense is an attractive but tricky strategy in dealing with missile threats.

HU:.There's a certain island calm about the war of words between Washington and Pyongyang.

If the missiles landed within 40 kilometers (25 miles) of Guam, as threatened, according to UN law, they would fall within the United States' exclusive economic zone although not their territorial waters.

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"North Korea has nearly been completely isolated by the outside world".

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