U.S. dollar retreats as risk sentiment perks up, but outlook still upbeat

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U.S. one dollar and British five pound are seen in this illustration taken May 7, 2021. REUTERS/Dado Ruvic/Illustration

  • Risk appetite rises with stocks up, U.S Treasuries selling off
  • Analysts expect the dollar to rise in near term

NEW YORK/LONDON, July 21 (Reuters) – The safe-haven dollar on Wednesday pulled back from more than three-month highs, with risk appetite back up with stocks higher, but investors remained cautious due to inflation fears and concerns about the highly contagious coronavirus variant.

Another safe haven, the Japanese yen, was also down on the day against the dollar, as risk aversion eased.

The Delta variant of the coronavirus, which has caused a surge in infections worldwide,rose to the top of investor concerns along with inflation, prompting global stocks to drop sharply on Monday. European equity markets though picked up on Wednesday and Wall Street shares rose as well. read more

In mid-morning New York trading, the dollar index, a…

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