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FOREX-Yen bounces as vaccine boost fades

    * 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 in to the safe-haven currency on
concerns that successful tests of a COVID-19 vaccine may not be
enough to offset the economic damage of a trying winter in
Europe and the United States.
    The yen rose 0.2% to 104.89 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 still 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 Aussie slipped 0.1% to $7224 and is headed 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 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.

========================================================
    Currency bid prices at 1:38PM in Sydney (0238 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session                                           
 Euro/Dollar                  $1.1804        $1.1804     -0.01%         +5.28%      +1.1814     +1.1801
 Dollar/Yen                   104.8750       105.1050    -0.17%         -3.40%      +105.1200   +104.8850
 Euro/Yen                     123.79         124.11      -0.26%         +1.51%      +124.1400   +123.8000
 Dollar/Swiss                 0.9145         0.9152      -0.05%         -5.48%      +0.9150     +0.9140
 Sterling/Dollar              1.3116         1.3124      -0.06%         -1.11%      +1.3125     +1.3112
 Dollar/Canadian              1.3153         1.3145      +0.08%         +1.26%      +1.3160     +1.3135
 Aussie/Dollar                0.7227         0.7233      -0.08%         +3.01%      +0.7242     +0.7222
 NZ                           0.6825         0.6839      -0.19%         +1.44%      +0.6843     +0.6823
 Dollar/Dollar All spots
Tokyo spots
Europe spots 
Volatilities 
Tokyo Forex market info from BOJ 

 (Reporting by Tom Westbrook; Editing by Sam Holmes and Richard
Pullin)
  
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