The dollar pared some gains on Thursday after riding long-end U.S. Treasury yields higher overnight, though investors remained on edge going into the year end as initial optimism over China's reopening fizzled.
The speed at which the country has scrapped COVID rules has overwhelmed its health system and sparked concerns about the spread of the virus.
Sterling rose 0.1% to $1.2030, but was similarly not far off its three-week trough of $1.1993 hit last week."Many countries adopting an additional layer of testing for travellers arriving from China reflect hobbled resumption of travel amid China's outbreak," said Vishnu Varathan, head of economics and strategy at Mizuho Bank. "This might also fuel fears of new strains of COVID that could once again disrupt the global recovery.
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