Safe haven currencies retreat following easing U.S.-Iran tensions
The Japanese Yen and Swiss Franc retreated on Thursday as the United States and Iran backed away from further conflict.
U.S. President Donald Trump responded overnight to an Iranian attack on U.S. forces with sanctions, not violence. Iran showed no imminent signals that it would retaliate further to U.S. strike that killed one of its senior military commanders on January 3.
The safe haven Yen quickly reversed its gains made after Wednesday’s missile strike.
The U.S. Dollar traded at 109.19 Yen <jpy=>, jumping back sharply from the three-month low of 107.65 Yen it gained on Wednesday.</jpy=>
The Swiss Franc, another safe-haven currency, followed a similar path.
The U.S. Dollar rose to 0.9740 Franc <chf=>from Wednesday’s low of 0.96655 while the Euro firmed to 1.0828 Franc from 21-month low of 1.07825 set on Wednesday.</chf=>