The dollar was little changed on Wednesday after U.S. retail sales rose more than expected in May, although caution kept investors from aggressively buying riskier currencies like the Australian dollar.
FILE PHOTO: Saudi riyal, yuan, Turkish lira, pound, U.S. dollar, euro and Jordanian dinar banknotes are seen in this illustration taken January 6, 2020. REUTERS/Dado Ruvic/Illustration
Discouraging news over the past 24 hours — record-high coronavirus infections in six U.S. states, clashes between Indian and Chinese troops in the western Himalayas and new coronavirus cases in Beijing — also undermined sentiment. “Market players are looking to, with caution, how critical the impact from any second wave of infections on the economy will be,” said Kazushige Kaida, head of FX sales at State Street. “It’s not that markets are pessimistic... But the length of time people hold their positions is getting shorter.”
That remains far from certain, with new coronavirus infections rising to record highs in six U.S. states, including populous Texas and Florida, on Tuesday.
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