SINGAPORE/LONDON—The dollar retreated on Tuesday after rallying the previous day when investors rushed to the safe-haven currency on worries about China’s COVID-19 flare-ups, while fears of fresh contagion from the collapse of crypto exchange FTX pressured bitcoin.
The euro was up 0.3 percent at $1.0265 after an 0.8 percent loss on Monday, sterling rose 0.46 percent to $1.187, partially reversing its 0.6 percent fall, and the dollar was at 141.86 yen, down 0.6 percent after a 1.2 percent gain.
Flows to the dollar on Monday came as Beijing warned that it was facing its most severe test of the COVID-19 pandemic, with a surge in COVID-19 cases sparking fresh restriction measures. Deaths from the virus were also recorded in the capital for the first time since May….