Safe-haven currencies weakened as market participants embraced a risk-on approach. The Japanese yen and Swiss franc both saw decreases in value as investors moved away from assets perceived as safe during times of uncertainty.

This shift in sentiment is largely attributed to growing optimism about the global economic outlook. Recent data suggests a potential recovery in several key economies, boosting confidence among investors.

Furthermore, positive developments in international trade negotiations have also contributed to the risk-on environment. Easing trade tensions reduce uncertainty and encourage investment in assets with higher growth potential.

The decline in safe-haven currencies reflects a broader trend of investors seeking higher returns in riskier assets, such as equities and emerging market currencies. This trend is likely to continue as long as the positive economic outlook persists and trade relations remain stable.