Company News

FOREX-Dollar bounce put on hold as coronavirus vaccine euphoria fades

    * Graphic: World FX rates in 2020
    * Dollar steadies as traders eye next steps in coronavirus
    * New Zealand dollar in focus before central bank meeting
    * Rising U.S. coronavirus cases also a concern

    By Stanley White
    TOKYO, Nov 11 (Reuters) - The dollar's gains were put on
hold on Wednesday as optimism about a coronavirus vaccine was
offset by worries about how the drug will be delivered and by a
surge of new infections in the United States.
    The New Zealand dollar is in focus ahead of a central bank
meeting later on Wednesday that may shed light on whether
policymakers will adopt negative interest rates.
    Initial optimism about coronavirus vaccine testing pushed
the dollar up against the safe-harbour yen and the Swiss franc,
but this momentum is starting to fade because there are still
several obstacles to clear before a vaccine can be distributed.
    "The dollar recovery is on hold for now because, when you
look at the details, there are still a lot of hurdles to clear
before any vaccine is rolled out," said Junichi Ishikawa, senior
foreign exchange strategist at IG Securities in Tokyo.
    "However, the dollar is supported by rising Treasury yields,
which should help the dollar make another push higher before
year's end."
    The dollar was last quoted at 105.23 yen, trading
near a three-week high.
    Against the euro, the dollar was little changed at
    The British pound traded at $1.3260, close to a
two-month high due to growing optimism that Britain and the
European Union will agree a long-sought-after trade deal.
    Sterling also held on to overnight gains against the euro
    Sentiment for the dollar got a boost after Pfizer Inc
 and BioNTech said on Monday their
experimental coronavirus vaccine was 90% effective.
    However, the reaction across financial markets has become
more tempered because there are several logistical hurdles to
making the drug available, including that it has to be shipped
at extremely cold temperatures.
    Several U.S. states on Tuesday imposed restrictions to curb
the spread of the coronavirus as hospitalizations soared,
highlighting the difficulty in containing the virus as winter in
the Northern Hemisphere approaches.
    The dollar index against a basket of six major
currencies was little changed at 92.729. 
    Elsewhere in currencies, the New Zealand dollar
traded near its highest level against the greenback in more than
a year ahead of a Reserve Bank of New Zealand policy meeting
that may yield comments about the possibility of negative
interest rates.
    The central bank is expected to hold rates at 0.25% and
introduce a new monetary policy tool to drive borrowing costs
lower for lenders.
    Across the Tasman Sea, the Australian dollar held
steady against its U.S. counterpart.
    Currency bid prices at 9:05AM (0005 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
 Euro/Dollar                  $1.1820        $1.1812     +0.07%         +5.43%      +1.1822     +1.1812
 Dollar/Yen                   105.2300       105.2650    -0.01%         -3.10%      +105.2850   +105.2500
 Euro/Yen                     124.37         124.36      +0.01%         +1.98%      +124.4600   +124.3800
 Dollar/Swiss                 0.9150         0.9151      -0.01%         -5.44%      +0.9153     +0.9151
 Sterling/Dollar              1.3260         1.3276      -0.10%         +0.00%      +1.3269     +1.3260
 Dollar/Canadian              1.3031         1.3036      -0.02%         +0.32%      +1.3036     +1.3028
 Aussie/Dollar                0.7282         0.7287      -0.07%         +3.78%      +0.7289     +0.7280
 NZ                           0.6827         0.6832      -0.04%         +1.49%      +0.6833     +0.6828
 Dollar/Dollar All spots
Tokyo spots
Europe spots 
Tokyo Forex market info from BOJ   

 (Reporting by Stanley White; editing by Richard Pullin)