* Yen on track for biggest weekly fall vs dollar since March
* Vaccine fails to lift risky currencies as caution weighs
* Dollar index up 0.7% this week
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
By Tom Westbrook
SYDNEY, Nov 13 (Reuters) - The dollar headed for its best
week against the yen since March on Friday, as COVID-19 vaccine
news lured investors out of the Japanese safe haven, though
riskier currencies have made little headway as the pandemic
worsens in Europe and the United States.
Virus worries helped the yen recoup a little of its losses
overnight, lifting it 0.3% against the greenback, but it remains
about 1.7% lower for the week, which if sustained would be its
sharpest weekly drop since falling 2.4% in the panic of March.
It was steady at 105.05 yen per dollar JPY= early in the
Asia session. The Australian dollar and New Zealand dollar
nursed losses made with the risk-averse mood, while sterling sat
near a one-week low after disappointing gross domestic product
data. GBP/
"There are reasons to be optimistic about the global
economic recovery, and eventual pandemic submission over the
coming year, but we are not out woods yet," said National
Australia bank's senior currency strategist Rodrigo Catril.
"The Aussie continues to find the air thinning above 73
cents."
The Aussie AUD=D3 last held at $0.7236 and is headed for a
small weekly loss. The kiwi NZD=D3 was steady at $0.6834 and
is headed for a weekly gain of 0.9% as investors reckon economic
improvements have made negative rates less of a sure thing.
The euro EUR= rose marginally overnight to clamber back
over $1.18, but it is down about 0.6% for the week so far. The
dollar index =USD is up 0.7% this week. The Chinese yuan
CNH= was steady at 6.6130 in offshore trade.
In Europe and the United States, a second wave of infections
has prompted the re-imposition of restrictions to stop the
virus' spread. That will have markets discounting any good news
in eurozone growth numbers due later on Friday.
"The GDP report will have minimal impact on the euro with
analysts, including ourselves, now widely expecting a double-dip
recession in the euro zone starting in the fourth quarter," said
Commonwealth Bank of Australia analyst Kim Mundy in a note.
Central bank chiefs likewise warned that the crisis has some
way to run, even with the end now in sight thanks to Pfizer's
announcement this week that trials have showed the vaccine it
developed with Germany's BioNTech seems to work.
"From a huge river of uncertainty, we see the other side
now," said European Central Bank President Christine Lagarde in
a panel discussion with U.S. Federal Reserve Chair Jerome Powell
and Bank of England Governor Andrew Bailey.
"But I don't want to be exuberant about this vaccination
because there is still uncertainty," she said, about its
production and distribution.
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Currency bid prices at 11:25AM in Sydney (0025 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.1810 $1.1804 +0.05% +5.34% +1.1810 +1.1803
Dollar/Yen JPY=D3 105.0350 105.1050 -0.05% -3.28% +105.1200 +105.0500
Euro/Yen EURJPY= 124.03 124.11 -0.06% +1.71% +124.1400 +124.0300
Dollar/Swiss CHF=EBS 0.9143 0.9152 -0.08% -5.50% +0.9150 +0.9144
Sterling/Dollar GBP=D3 1.3123 1.3124 -0.02% -1.06% +1.3125 +1.3120
Dollar/Canadian CAD=D3 1.3135 1.3145 -0.07% +1.12% +1.3144 +1.3136
Aussie/Dollar AUD=D3 0.7239 0.7233 +0.10% +3.19% +0.7242 +0.7228
NZ NZD=D3 0.6838 0.6839 +0.00% +1.63% +0.6843 +0.6830
Dollar/Dollar
All spots FX=
Tokyo spots AFX=
Europe spots EFX=
Volatilities FXVOL=
Tokyo Forex market info from BOJ TKYFX