WASHINGTON, Dec 29 (Reuters) – The dollar slipped on Thursday with investors on edge at the end of the year as initial optimism over China’s reopening fizzled out and as markets processed a readout of U.S. jobless claims.
Markets are weighing the impact of China’s rapid loosening of its strict COVID-19 rules with a surge in new infections.
“China is one of the keys I think to 2023 and what happens to the global economy,” said Chris Gaffney, president of world markets at TIAA Bank.
Following China’s removal of its quarantine rule for inbound travelers from Jan. 8, the United States, Japan, India and other countries said they would require COVID tests for travelers from China.
“If they can bounce back from the dramatic slowdowns that we’ve seen, that helps the overall growth on the global scale, but on the other hand, it could also lead to higher energy demand and more demand means higher prices,” said…