Aside from the flight-to-quality we often see in times of geopolitical instability there are also some practical implications should the North/South Korean skirmish escalate.
Any significant conflict would likely disrupt Asian trade. If trade were disrupted, Asian ccys would continue to weaken, meaning Asian central banks would not need to intervene to weaken their currencies. Therefore would not need to buy EUR, AUD, GBP etc to diversify reserves. All that would contribute to USD strength…