Which currencies to trade amid rising North Korea tensions

The Swiss franc, the U.S. dollar and even the euro might be the best options for investors trading currencies in the face of rising threats from North Korea, analysts told CNBC.

"The CHF (Swiss franc) along with the JPY (Japanese Yen) are widely considered the usual safe-haven currencies. However, given geographical proximately I would expect the JPY to be most sensitive to issues regarding North Korea," Jane Foley, head of forex strategy at Rabobank, told CNBC Wednesday.

In fact, the Swiss franc rose 1 percent against the dollar on Wednesday morning, as investors looked for safe options after North Korea said it was "carefully examining" a plan to strike Guam, where a U.S. military base is located.

The yen was 0.5 percent up against the U.S. dollar in early morning trade in Europe on Wednesday.

Some hedge funds had shortened their positions on the Swiss franc for the past few weeks to invest in European assets. This was due to strong economic data coming in from Europe, which attracted investors' appetite.

Source: Bloomberg

Junior Trader Stefan Panteleev

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