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FOREX-Yen rebound resumes, Aussie gains, as currency markets weigh risk from COVID wave

    * Yen recovers some of week's losses
    * Dollar slips as vaccine rally peters out
    * Graphic: World FX rates in 2020 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. The Swiss franc
 firmed to 0.9132 against the dollar, after trading at
0.9192 mid-week.
   The dollar slipped 0.18% against a basket of currencies
.
   Global markets surged on Monday after Pfizer Inc 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, 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                 $92.7910       92.9680     -0.18%         +0.00%      +93.0070    +92.7670
 Euro/Dollar                  $1.1824        $1.1804     +0.17%         +5.47%      +1.1834     +1.1800
 Dollar/Yen                   104.7200       105.1050    -0.32%         -3.55%      +105.1450   +104.6950
 Euro/Yen                     123.81         124.11      -0.24%         +1.53%      +124.3000   +123.7700
 Dollar/Swiss                 0.9132         0.9152      -0.17%         -5.59%      +0.9159     +0.9128
 Sterling/Dollar              1.3165         1.3124      +0.33%         -0.72%      +1.3186     +1.3112
 Dollar/Canadian              1.3132         1.3145      -0.10%         +1.09%      +1.3170     +1.3116
 Aussie/Dollar                0.7251         0.7233      +0.26%         +3.35%      +0.7264     +0.7222
 Euro/Swiss                   1.0797         1.0801      -0.04%         -0.51%      +1.0816     +1.0791
 Euro/Sterling                0.8980         0.9000      -0.22%         +6.21%      +0.9005     +0.8968
 NZ                           0.6834         0.6839      -0.06%         +1.58%      +0.6843     +0.6811
 Dollar/Dollar                                                                                  
 Dollar/Norway                9.1415         9.1755      -0.29%         +4.30%      +9.1895     +9.1400
 Euro/Norway                  10.8100        10.8287     -0.17%         +9.88%      +10.8537    +10.8070
 Dollar/Sweden                8.6743         8.6413      +0.52%         -7.20%      +8.6890     +8.6200
 Euro/Sweden                  10.2567        10.2040     +0.52%         -2.03%      +10.2705    +10.1988
 

    
 (Reporting by David Henry in New York and Elizabeth Howcroft in
London; Editing by Alex Richardson)
  
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