LONDON, June 7: The dollar gained on the euro here on Thursday on a report that North Korea had test-fired two short-range missiles and in response to expectations the US Federal Reserve will refrain from lowering US interest rates this year.

The single European currency in late-day trade was at $1.3456 after $1.3503 late Wednesday in New York.

The dollar was meanwhile trading at 121.33 yen, up from 121.06.

Traders said the US currency drew strength from a report by the South Korean military that North Korea on Thursday test-fired two short-range missiles, less than two weeks after its previous launch.

Traditionally a safe haven for nervous investors during times of geopolitical tension, the dollar attracted bids on the South Korean report.

Also supporting the greenback was a growing perception by analysts that the US Federal Reserve, the central bank, will not cut interest rates — despite a slowing US economy — this year.—AFP