China’s ‘Zero-Covid’ Fiasco Will Give Dollar Rally New Life

People betting that the U.S. dollar’s slide will continue might want to pay more attention to what’s afoot in Asia.

Or, perhaps more to the point, what’s not afoot here. Take China, where officials have been hinting all year about a pivot away from giant growth-killing “zero Covid” lockdowns. Myriad times, chatter about a more “dynamic” approach prioritizing vaccinations and testing over shutting down major metropolises excited investors. Then, new lockdowns ended the party.

This pattern played out again this week in Hainan, an island province dependent on tourism. And...