Investing.com - The dollar was higher against the yen on Tuesday, extending gains into a second session as market turmoil caused by heightened tensions between the U.S. and North Korea eased.
USD/JPY was up 0.61% to 110.32 by 02.53 a.m. ET (06.53 a.m. GMT), extending its recovery from Friday’s almost four-month trough of 108.72.
Tensions over North Korea eased as the country toned down its recent sharp rhetoric, saying it would watch what the U.S. does before making a decision on a threatened missile strike near Guam.
China also took steps to implement United Nation sanctions against the country after the U.S. accused it of not doing enough to rein in its neighbor.
The dollar was also higher against the traditional safe haven Swiss franc, with USD/CHF climbing 0.42% 0.9752.
The dollar gained 1.01% against the Swissy on Monday, its largest one day percentage gain since July 27.
The U.S. dollar index, which measures the greenback’s strength against a trade- weighted basket of six major currencies, was up 0.22% to 93.55.
Investors were looking ahead to U.S. retail sales figures for July later in the day after last Friday’s weaker-than-expected inflation data tempered expectations for a third interest rate hike by the Federal Reserve this year.
The euro was lower against the dollar, with EUR/USD slipping 0.25% to 1.1751.
The pound was steady, with GBP/USD at 1.2959 ahead of the latest UK inflation report later Tuesday.