China, Asia's largest economy, said it will stop requiring inbound travellers to go into quarantine from Jan. 8 in addition to downgrading the seriousness of COVID-19 as it has become less virulent, leading to hopes of economic growth picking up faster.
The Singapore dollar is the only Asian currency to have logged positive growth on a year-to-date basis. "We are getting better clarity on the endpoint in terms of the reopening and I think we're moving in the right direction in the medium term." However, some caution still prevailed as analysts said there was more work to do to bring inflation down due to a resilient labour market.
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