SINGAPORELONDON, Dec 7 Reuters The dollar was little changed on Wednesday after some of the biggest U.S. banks warned of an impending recession, while China39;s yuan firmed as authorities loosened some of the country39;s zeroCOVID rules.

Top bankers from JPMorgan Chase Co, Bank of America and Goldman Sachs said overnight that the banks are bracing for a worsening economy next year as inflation and high interest rates cut into consumer demand.

The greenback was up 0.32 against the Japanese yen following a 0.16 gain on Tuesday. Yet the euro was flat against the dollar at 1.048, after falling 0.2 in the previous session.

Investors are weighing up the outlook for the U.S. dollar, which surged this year but has fallen in recent weeks on expectations that the Federal Reserve might soon pause its interestrate hikes.

Some investors believe the recent drop has gone too far and that concerns about the global economy and further Fed rate hikes should boost the currency.

We39;ve been forecasting a recession in the U.S., the UK, the euro zone and Japan … It39;s part of our baseline, said Joseph Capurso, head of international and sustainable economics at Commonwealth Bank of Australia.

That will provide more support to the U.S. dollar as a safehaven currency.

Against a basket of currencies, the U.S. dollar index was less than 0.1 higher at 105.55.

In Asia, China39;s yuan firmed as the government announced measures that marked a sharp change to its tough, threeyearold…