* Dollar index up after strong data, Asian geopolitical
tensions
* Fed's Powell cautious on economic recovery
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
By Hideyuki Sano
TOKYO, June 17 (Reuters) - The dollar held firm against many
of its rivals on Wednesday after U.S. retail sales jumped far
more than expected in May, while risk-sensitive currencies were
hobbled by concerns about the coronavirus and diplomatic
tensions in Asia.
Federal Reserve chairman Jerome Powell also doused some of
the rosy expectations on Tuesday, as he painted a rather bleak
picture of the U.S. economy.
The dollar index =USD stood at 97.003, having risen about
0.4% on Tuesday.
The euro traded at $1.12635 EUR= , having lost 0.5% on
Tuesday and in consolidation after hitting a three-month high of
$1.14225 a week ago.
The Australian dollar eased off 0.4% to $0.6861 AUD=D4 ,
slipping further from Tuesday's high of $0.6977.
"In Asia, there is a bit of risk-off mood following a
renewed outbreak of coronavirus in Beijing and also some
geopolitical tensions in the region," said Kyosuke Suzuki,
director of currencies at Societe Generale.
China sharply ramped up restrictions on people leaving the
capital on Tuesday in an effort to stop the most serious
coronavirus flare-up since February from spreading to other
cities and provinces. North Korea on Tuesday blew up a joint liaison office set up
in a border town in 2018 to foster better ties with South Korea,
while India's army said 20 of its soldiers had been killed in
clashes with Chinese troops at a disputed border site in the
western Himalayas. Against the yen, the dollar was little changed at 107.39 yen
JPY= , stuck in a narrow range so far this week.
Tuesday's data showed U.S. retail sales jumping 17.7% last
month, outstripping economists' median forecast of 8.0%
increase.
The surge in retail sales last month recouped 63% of March
and April's decreases, raising hopes of a quick recovery in the
consumption, the driver of the U.S. economy.
Still, Fed chairman Powell had a word of caution in his
testimony at Congress, saying a full U.S. economic recovery will
not occur until the American people are sure that the novel
coronavirus epidemic has been brought under control.
That still remains far from certain, with new coronavirus
infections hitting record highs in six U.S. states, including
populous Texas and Florida, on Tuesday.