SINGAPORE, Dec 29 Reuters The dollar pared some gains on Thursday after riding longend U.S. Treasury yields higher overnight, though investors remained on edge going into the year end as initial optimism over China39;s reopening fizzled.

Following China39;s removal of its quarantine rule for inbound travellers beginning Jan. 8, countries such as the United States, Japan and India said they would require COVID tests for travellers from China.

The speed at which the country has scrapped COVID rules has overwhelmed its health system and sparked concerns about the spread of the virus.

The Japanese yen was last roughly 0.6 higher at 133.71 per dollar, languishing near a oneweek low of 134.50 that was hit in the previous session.

Sterling rose 0.1 to 1.2030, but was similarly not far off its threeweek trough of 1.1993 hit last week.

The euro was up 0.12 at 1.0623.

Many countries adopting an additional layer of testing for travellers arriving from China reflect hobbled resumption of travel amid China39;s outbreak, said Vishnu Varathan, head of economics and strategy at Mizuho Bank. This might also fuel fears of new strains of COVID that could once again disrupt the global recovery.

The uncertainty over the global economic outlook, along with mounting worries about a recession in the United States, saw the twoyear Treasury yield , which typically moves in step with interest rate expectations, slip overnight. It last stood at 4.3678.

Meanwhile, the yield on the benchmark…