* Yen recoups some vaccine losses, still tracks for weekly loss * Vaccine fails to lift risky currencies as caution weighs * Dollar index up 0.7% this week * Graphic: World FX rates in 2020 tmsnrt.rs/2RBWI5E By Tom Westbrook SYDNEY, Nov 13 (Reuters) - The Japanese yen edged higher on Friday as investors crept back to the safe-haven currency, worried about the economic damage of a trying winter in Europe and the United States as COVID-19 cases continue to surge. The yen rose 0.2% to 104.90 per dollar in the Asia session, its highest since Monday when it tumbled after Pfizer announced that it had developed a working virus vaccine. The yen remains down by about 1.5% against the dollar this week, its sharpest weekly drop in five months, and softer on most crosses. But the bounce from its lows - along with softness in riskier currencies - shows plenty of caution remains. "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 risk-sensitive Australian dollar stabilised around $0.7230 in Asia, pulling back from a small dip as Edison Research projected U.S. President-elect Joe Biden will win the battleground state of Arizona - cementing his winning margin. The Aussie is on track for a small weekly loss. The kiwi was down 0.2% at $0.6824 though is headed for a weekly gain of 0.7% as investors reckon economic improvements have reduced the chance of negative rates. The euro rose marginally overnight to clamber back over $1.18, but it is down about 0.6% for the week so far, helping the dollar index to a 0.7% weekly rise. The Chinese yuan was marginally weaker at 6.6219 per dollar. In Europe and the United States, a second wave of infections has prompted the re-imposition of social 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. Despite Pfizer's announcement this week that trials have showed the vaccine it developed with Germany's BioNTech seems to work, a jump to mass vaccinations faces many hurdles. "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. ======================================================== Currency bid prices at 4:19PM in Sydney(0519 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar $1.1805 $1.1804 +0.00% +5.29% +1.1814 +1.1800 Dollar/Yen 104.9100 105.1050 -0.17% -3.39% +105.1200 +104.8850 Euro/Yen 123.85 124.11 -0.21% +1.56% +124.1400 +123.8000 Dollar/Swiss 0.9148 0.9152 -0.03% -5.45% +0.9151 +0.9140 Sterling/Dollar 1.3122 1.3124 -0.02% -1.07% +1.3125 +1.3112 Dollar/Canadian 1.3161 1.3145 +0.13% +1.32% +1.3170 +1.3135 Aussie/Dollar 0.7230 0.7233 -0.03% +3.06% +0.7242 +0.7222 NZ 0.6824 0.6839 -0.22% +1.41% +0.6843 +0.6815 Dollar/Dollar All spots Tokyo spots Europe spots Volatilities Tokyo Forex market info from BOJ (Reporting by Tom Westbrook; Editing by Sam Holmes, Richard Pullin and Kim Coghill)
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