* Yen recovers some of week's losses
* Dollar slips as vaccine rally peters out
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
(Updates prices, adds comment)
By David Henry
NEW YORK, Nov 13 (Reuters) - The safe-haven Japanese yen and
Swiss franc strengthened on Friday, as the threat of a new
COVID-19 wave in the United States and Europe chilled the
increased risk appetite that had been driven by promising
vaccine news earlier this week.
At 104.72 yen, the dollar had lost 0.32% against the
Japanese currency on Friday morning in New York. The yen dropped
around 2% versus the dollar on Monday JPY=D3 . The Swiss franc
CHF=EBS firmed to 0.9132 against the dollar, after trading at
0.9192 mid-week.
The dollar slipped 0.18% against a basket of currencies
=USD .
Global markets surged on Monday after Pfizer Inc PFE.N said
its experimental vaccine was more than 90% effective in trials.
The news saw the dollar rise as traders quit their long-yen
positions. But currency market traders became more risk-averse on
Thursday and Friday as infections spread and the heads of the
Federal Reserve and the European Central Bank (ECB) stressed
that the economic outlook remains uncertain. "It is tough to have a sustained run of optimism when virus
cases continue to mount," said Joe Manimbo, senior market
analyst at Western Union Business Solutions. "The market sees
light at the end of the tunnel, but we're still in the tunnel."
Despite the pullback, the yen was still on track for its
worst week since September.
The euro was up 0.17% at $1.1824.
The prospect of a vaccine is a source of relief but the euro
zone will still suffer as a result of new lockdown measures, two
ECB policymakers also said. But the Australian dollar - a liquid proxy for risk and
global economic growth- picked up. It was up 0.26% on the day at
0.7251 versus the dollar.
"The prospect of the Fed staying super-easy through the
winter and beyond, while vaccine optimism, builds is dollar
bearish," Kit Juckes, an FX strategist at Societe Generale,
wrote in a note.
"The big winners in the longer-run are the higher-beta,
growth and trade-sensitive currencies," he said.
The New Zealand dollar was down 0.06% versus the dollar at
0.6834 NZD=D3 , but still up on the week after jumping to its
highest since March 2019 after the Reserve Bank of New Zealand's
meeting on Wednesday. Germany's health minister said on Friday that it was too
early to say how long the latest lockdown would last, while the
French prime minister said France's measures would not be eased
for at least two weeks. Elsewhere, President-elect Joe Biden won the battleground
state of Arizona late on Thursday, but President Donald Trump
still refuses to accept defeat. Currency bid prices at 9:48AM (1448 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index =USD $92.7910 92.9680 -0.18% +0.00% +93.0070 +92.7670
Euro/Dollar EUR=EBS $1.1824 $1.1804 +0.17% +5.47% +1.1834 +1.1800
Dollar/Yen JPY=D3 104.7200 105.1050 -0.32% -3.55% +105.1450 +104.6950
Euro/Yen EURJPY= 123.81 124.11 -0.24% +1.53% +124.3000 +123.7700
Dollar/Swiss CHF=EBS 0.9132 0.9152 -0.17% -5.59% +0.9159 +0.9128
Sterling/Dollar GBP=D3 1.3165 1.3124 +0.33% -0.72% +1.3186 +1.3112
Dollar/Canadian CAD=D3 1.3132 1.3145 -0.10% +1.09% +1.3170 +1.3116
Aussie/Dollar AUD=D3 0.7251 0.7233 +0.26% +3.35% +0.7264 +0.7222
Euro/Swiss EURCHF= 1.0797 1.0801 -0.04% -0.51% +1.0816 +1.0791
Euro/Sterling EURGBP= 0.8980 0.9000 -0.22% +6.21% +0.9005 +0.8968
NZ NZD=D3 0.6834 0.6839 -0.06% +1.58% +0.6843 +0.6811
Dollar/Dollar
Dollar/Norway NOK=D3 9.1415 9.1755 -0.29% +4.30% +9.1895 +9.1400
Euro/Norway EURNOK= 10.8100 10.8287 -0.17% +9.88% +10.8537 +10.8070
Dollar/Sweden SEK= 8.6743 8.6413 +0.52% -7.20% +8.6890 +8.6200
Euro/Sweden EURSEK= 10.2567 10.2040 +0.52% -2.03% +10.2705 +10.1988
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