SHANGHAI: China’s yuan was roughly flat versus the dollar on Tuesday in thin trading, as weak industrial profit data offset optimism over the country’s steps to reduce COVID-19 curbs and reopen the economy.

The onshore yuan rose as much 0.28% to a near two-week high of 6.9434 per dollar in early morning trade, after China’s central bank set a firmer midpoint rate.

But the Chinese currency gave up all the gains by the lunch break, trading around 6.9620 at midday.

The yuan was initially supported by news that China will stop requiring inbound travellers to go into quarantine starting from Jan. 8, representing a major step towards easing COVID curbs on its borders, which have been largely shut since 2020.