The Swiss currency was also on track for its biggest daily gain against the euro since the Swiss National Bank removed its cap on the currency in January 2015.
Turning to the oil-linked loonie, it managed to post some gains relative to the greenback despite weakening oil prices. Eastern time. The Dow Jones industrial average slid 69 points, or 0.3 percent, to 22,016. The Nasdaq composite lost 99 points, or 1.6 percent, to 6,252.
With the tense mood pushing European shares down for a third day and Wall Street set to fall again, the stocks were on course for their worst week since Donald Trump won November's USA presidential election, Reuters reported.
"If you strip away what's going on in North Korea, and if you strip away what's going on in Washington, which are things that are tougher to predict, the economy, the global recovery, earnings, it all paints a very positive picture for the rest of the year", Kravetz said.
In contrast to the USA market, global equities remained weak.
Tensions between the USA and North Korea continued to simmer early Friday.
Technology companies, which have been the biggest gainers this year as the market hit a succession of record highs, led the broad slide. Top automaker Hyundai Motor fell 2.07 percent to 142,000 won. Advanced Micro Devices gave up 50 cents, or 3.9 percent, to $12.33.
Asian markets swooned from the opening bell, and closed in the red.
Rising costs for housing, medical care and food helped push the Consumer Price Index (CPI) up 0.1 percent in July, seasonally adjusted, after no change in June and a 0.1 decrease in May, the US Labor Department said. Macy's was down 9.7 percent after the company said its sales continued to decline in the second quarter. Tokyo's Nikkei 225 tumbled 1.3 percent, while Seoul's Kospi fell 1.1 percent.
Losses at the Snapchat parent ballooned to $443 million in the second quarter, a almost fourfold increase from the same period past year.
Traders snapped up shares in companies that delivered strong quarterly results. On the Nasdaq, 1,462 issues rose and 1,227 fell. Odds of a Fed rate rise during the December meeting now stand at around 40% according to the CME Group's 30-day Fed Fund futures prices.
Benchmark 10-year notes were last up 12/32 in price to yield 2.201 percent, from 2.242 percent late on Wednesday. It added 39 cents to $49.56 a barrel on Wednesday.
Gold added $3.90 to settle at $1,294 an ounce. Regions Financial shed 23 cents, or 1.6 percent, to $14.07. Copper fell 2 cents to $2.93 a pound.
The Japanese yen strengthened by 0.5% to about 109.70 per dollar. Humana rose $4.74, or 1.9 percent, to $254.96.
Major indexes in Europe closed mostly lower. Britain's FTSE 100 sank 1.4 percent.
Amid the hot rhetoric, USA stocks sold off sharply on Thursday, with the S&P 500 falling more than 1 percent.