Yuan rallies on hopes of COVID policy relief; dollar falters

The yuan jumped against the dollar on Tuesday ahead of a COVID-19 press briefing in China that is spurring hopes of a potential easing in the country’s strict pandemic restrictions following an unprecedented episode of unrest, Reuters reported.
The offshore yuan CNH=D3 surged 1.2% to 7.1607 a dollar after a statement from the Chinese government said experts from the National Health Commission and two other agencies involved in disease control and prevention would speak at a COVID press conference at 0700 GMT on Tuesday.
The onshore yuan CNY=CFXS was up 0.66% at 7.1594 per dollar.
The U.S. dollar, which rallied in the previous session on mounting worries over China’s COVID situation, pared some of its overnight gains and moved broadly lower.
The Aussie AUD=D3, often used as a liquid proxy for the yuan, rose 0.8% to $0.6708. The kiwi NZD=D3 similarly gained 0.9% to $0.6214.
Sterling GBP=D3 strengthened 0.4% to $1.2007.