Safe-haven currencies such as the Japanese yen retreated on Thursday as the United States and Iran backed away from further conflict, with markets flipping back to a more risk-taking approach on hopes of a U.S.-China trade deal.
U.S. President Donald Trump responded overnight to an Iranian attack on U.S. forces with sanctions, not violence. Iran offered no immediate signal it would retaliate further to a Jan. 3 U.S. strike that killed one of its most senior military commanders.
It was last down 0.2% at 109.36, a 1-1/2-week low.
The dollar, also seen as a safe choice to park money in times of turmoil, fell against other major currencies.
The greenback was down 0.1% versus the euro as euro/dollar traded at $1.1115 and by the same magnitude versus the pound, last trading at $1.3112.
The euro was also rising against the Swiss franc, another safe-haven, by 0.2% to 1.0833.
Source : Reuters