U.S. retail sales fall more than expected, supported by safe-haven demand


U.S. retail sales fall more than expected U.S. industrial production rises Japanese low rates up: riskier currencies lose out Kiwi carries three week low Graphic: World FX rates https: tmsnrt.rs 2 RBWI 5 E by Elizabeth Howcroft NEW YORK LONDON, Aug 17 - The dollar gained for a second consecutive session on Tuesday, supported by safe-haven demand as investors fretted about Afghanistan and China's plans to regulate the Internet sector, and Delta The general tone in the financial markets was one of caution, with shares on Wall Street in red. Asian shares were also rattled earlier by concerns about China's move to ban Internet companies as it lowers the boom on its powerful tech sector. A much sharper decline than expected in Tuesday's U.S. retail sales curbed gains in the dollar, but that was offset by the higher-than-expected rise in industrial production. The dollar is changing as global risks climb, said Joe Manimbo, a senior market analyst at Western Union Business Solutions in Washington. Part of the boost stems from a trio of uncertainties related to China A ghanistan and the virus continuing to multiply. Retail sales were largely dismissed as they didn't change the bullish outlook for spending given the strengthening job market. U.S. military aircraft evacuating diplomats and civilians from Afghanistan resumed on Tuesday after Kabul was cleared of thousands of families desperate to flee following the sudden takeover of Taliban officials at Kabul airport. In Mid-Meaning New York trading, the U.S. dollar index rose 0.4% to 92.95. The euro, the biggest component of the dollar index, fell 0.4% to $1.1732. The Japanese Dollar fell to its lowest in three weeks on Tuesday after the country announced its first COVID - 19 case since February, prompting the government to release new short-term locks. The currency fell sharply in early Asian trading hours, after Prime Minister Jacinda Arden told Auckland - where the case was reported - that it would go into lockdown for seven days, while New Zealand as a whole would have the strongest level of lockdown for three days. It was last down 1.4% at US $6919, after dropping to US $6905, the lowest since late July. The Australian dollar fell to a nine-month low after the Central Bank minutes were identified as dovish. It was last down almost 1% at $0.7264 by Dollar. The minutes showed the Reserve Bank of Australia which surprised markets by sticking to its plan to start tapering bond buying, would be prepared to take policy action, should lockdowns threaten a deeper economic setback. The safe-haven Japanese yen was down against a firm dollar which rose 0.2% to 109.42 yen. The Swiss franc, another safe haven, was slightly reduced to slightly lower versus the dollar, which was last at 0.9128 franc. The two currencies were boosted in recent days by weak U.S. and Chinese economic data which stoked fears that the spread of Delta variant could slow the recovery from COVID-19 - 19.