Dollar flat as investors digest China’s loosening of COVID rules

By Hannah Lang

WASHINGTON (Reuters) – The dollar was flat on Tuesday after China said it would scrap its COVID-19 quarantine rule for inbound travelers – a major step in reopening its borders, even as COVID cases spike.

China will stop requiring arriving travelers to go into quarantine starting Jan. 8, the National Health Commission said on Monday. At the same time, Beijing downgraded regulations for managing COVID cases to the lighter Category B from the top-level Category A.

The offshore yuan fell 0.13% to $6.9653 per dollar.

“We’ve been in a very narrow trading range, and I think with the dollar firming up against the euro and yen, we could see further dollar gains against the Chinese currency,” said Marc Chandler, chief market strategist at Bannockburn Global Forex.

Still, investors could be cheered by what some perceive to be “Chinese policymakers’ resolve to full…

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