Dollar edges higher vs yen as concerns over N. Korea tensions ease

Dollar edges higher vs yen as concerns over N. Korea tensions ease

The Dow Jones industrial average advanced 135.39 points, or 0.6 percent, to 21,993.71.

Markets also kept an eye on developments in the Korean peninsula after tensions flared up between the United States and North Korea last week.

Among other precious metals, silver was up 0.3 percent at $17.12 per ounce, after hitting its highest since June 14 at $17.24 an ounce last week.

USA officials on Sunday played down the risk of an imminent war with North Korea.

The Nasdaq climbed 83.68 (+1.34 percent) to close at 6,340.23, while the S&P 500 finished at 2,465.84, up 24.52 (+1.00 percent) from its open.

"Tensions between the U.S. and North Korea seemed to cool a little - at least on the U.S. side and that emboldened the bulls to buy stocks once again", said Greg McKenna, an analyst at AxiTrader.

CURRENCIES: The dollar rose to 110.19 yen from 109.57 yen late Monday in Asia.

About 5.5 billion shares changed hands on US exchanges.

Pentagon chief Jim Mattis and Secretary of State Rex Tillerson said in an opinion piece for The Wall Street Journal that the United States favors a diplomatic solution to the stand-off with Pyongyang, especially with help from China, though they stressed diplomacy is "backed by military options".

The S&P 500 is up 227.01 points, or 10.1 percent.

That prompted North Korea to say it was considering plans to fire missiles at Guam, a USA -held Pacific island.

That, combined with the easing of tensions over North Korea and a large amount of speculative long positioning, meant there was a compelling case for further downside erosion, at least over the short-term, INTL FCStone analyst Edward Meir said in a note.

The CBOE Volatility index, Wall Street's fear gauge, fell more than 3 points after it spiked to a nine-month high last week.

The U.S. consumer price index for July, released on Friday, inched up 0.1 percent, falling short of market expectations and dampening speculation that the Federal Reserve would conduct another interest rate hike later this year.

"But, I do think that we're seeing a little bit of a relief rally today. that we aren't going to see this situation really boil over in the very, very near term".

Coach was off about 6 percent in premarket trading after the company reported a fall in net sales as it cut back on promotions and pulled its products from department store shelves.

The Swiss franc and the yen are often sought in times of geopolitical tension or global financial stress, partly because both Switzerland and Japan have big current account surpluses.

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