USD is falling as traders evaluate the reopening in China

The dollar fell on Thursday after rising in the previous session, as investors fretted at the end of the year as initial optimism about China easing coronavirus restrictions and opening up the economy waned.

The Japanese yen rose, in its latest trading, by 0.64 percent, to 133.66 against the dollar. This came after falling 0.73 percent on Wednesday, hitting a one-week low of 134.50.

The euro also rose, rising 0.28% to $1.064, after falling 0.27% on Wednesday.

The British pound rose 0.23% to $1.205, after declining 0.11% on Wednesday.

Analysts warned against overconfidence in price movements amid low trading volumes as the New Year approaches.

Investors are assessing the impact of China’s rapid easing of its strict anti-COVID-19 rules.

After China canceled the quarantine rule for inbound travelers from January 8, countries such as the United States, Japan and India said they would require COVID-19 tests for people arriving from China.

The dollar index, which measures the performance of the greenback against a basket of currencies, fell 0.11 percent to 104.23. It had risen 0.18 percent in the previous session.

The Australian dollar fell 0.23% to $0.672, while its New Zealand counterpart fell 0.17% to $0.63.

The offshore Chinese yuan rose 0.31% to 6.978 per dollar.