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The dollar retreated on Tuesday following an overnight rally that saw investors flocking to the safe-haven currency on worries over China’s COVID flare ups, though cautious risk sentiment kept the greenback supported.
The fresh bout of risk aversion had weighed particularly on the antipodean currencies – often used as liquid proxies for the Chinese yuan – with the Aussie sliding nearly 1% overnight. It recouped some losses on Tuesday, rising 0.14% to $0.6615.
