The Swiss franc and the Japanese yen retreated from record highs against the U.S. dollar during Tuesday’s trading, amid ease in tensions following the kill of Iranian military commander Qassem Soleimani.
As of 12:21 GMT, the Swiss franc hit today's high at 0.9676 versus the U.S. dollar after opening today at 0.9679, while currently trading at 0.9706.
The Japanese yen, which is considered one of the most favorite safe heaven currencies, slipped against the green currency to 108.41 after hitting a peak of 107.77 on Monday, the highest since October 10, 2019.
Safe haven assets has signaled a remarkable increase after the conflict between the United States and Iran flared up, with the U.S. air strike on Baghdad airport killing a military commander in Iran, leading to a strong escalation of tensions in the Middle East.
Earlier in the week, President Donald Trump threatened to respond to any Iranian attack targeting a U.S. base or U.S. citizen, after several Iranian-led pledges to respond strongly to the killing of the Iranian military commander.
In the same vein, the United States refused to mark the entry of Iranian Minister of Defense Mohammad Javad Zarif to U.S. territory, which prevents him from attending the UN Security Council meeting later this week.
However, concerns have eased as investors became less worries about seeing a comprehensive war between the United States and Iran.
Gold also retreated from a six-year high of $1588.50 an ounce hit the previous session to trade at $1568.
Crude oil plunged more than 1 percent to hover around $62.82 a barrel, resuming its fall from a nine-month top of $64.71 registered on Monday.
On the other hand, the United States and China are expected to sign a preliminary agreement on January 15 to de-escalate their long-running trade war.
In terms of economic data, the U.S. Supply Institute's data on non-industrial performance in the country is to be released and factory orders figures as well as trade balance will be disclosed later in the day.
Meanwhile, the dollar
index, which measures the performance of major six currencies against the U.S
dollar, rose to 96.45.