In the foreign exchange market, the dollar is recovering as investors digest China's relaxation of COVID rules.

China has just taken a major step in reopening its borders that has boosted risk-linked currencies such as the Australian dollar. It announced that it would remove its COVID-19 quarantine rule for incoming travelers. This move favors the dollar has reduced its losses since Tuesday. The US dollar index rose by 0.134% to 104.220

The Aussie rose 0.22% against the greenback to $0.674 in generally thin trading during the holiday season, while the New Zealand dollar gave up its previous gains, falling 0.14% to $0.629. Both currencies are often used as liquid proxies for the Chinese yuan.

The offshore yuan fell by 0.12% to 6,9661 per dollar. Elsewhere, the euro fell by 0.08% against the dollar to $1.0626.

The Japanese yen fell 0.44% against the dollar to 133.45, despite short-term government bond yields rising to their highest level in more than seven and a half years, following an auction that attracted relatively low demand. As for cryptocurrencies, bitcoin fell by 0.33% to $16,775, while ether fell by 0.57% to $1,210.00.