The greenback slumped on Tuesday as China took an eased decision for the coming travellers, trying to take off strict curbs on its borders.

Based on yesterday's announcement by the National Health Commission, China will no longer impose the quarantine need for inbound travellers even with the surged infected cases.

The U.S. dollar index that measures the greenback versus its major pairs retreated at 104.04.

EUR/USD nudged up by 0.2% at $1.06545.

China is step by step giving up its strict Covid-19 policies, which will push the Chinese economy and the euro higher, the euro has been backed up also by ECB as the bank decided to take more aggressive stance to combat the surged inflation.

GBP/USD steadied at $1.2071, affected by the market closure due to Christmas holiday.

USD/JPY dropped 0.25% at 133.07 dollars, despite the fact that the short-term government bond yields touched its highest level in 7 years.

JPY is geared towards its highest quarter surge in the last 13 years ago, with an advance of 8.1%, post the unexpected bombshell dropped by BOJ regarding its policies.

The consumer spending figures for November saw an advance last Friday but the inflation showed some ease, which consequently supported projections that Fed may soften its hawkish rates hikes.