FOREX-Dollar rises again as markets adjust to vaccine hope and higher yields

* Euro falls to lowest vs US dollar in a week
* New Zealand dollar hits strongest since March 2019
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

(Recasts, adds comment, updates prices)
By David Henry
NEW YORK, Nov 11 (Reuters) - The U.S. dollar rose and the safe-haven yen weakened again on Wednesday
as the markets continued to adjust to higher interest rates and prospects for economic growth following
news on Monday of encouraging results for a coronavirus vaccine.
The euro fell to its lowest level against the dollar in a week as yields on U.S. bonds rise compared
with those on European bonds. And, the New Zealand dollar soared to its strongest in a year and a half as
traders scaled back bets that the central bank there would move to negative interest rates. The dollar has started moving up with gains in equities in a switch from its safe-haven status during
the COVID-19 crisis when it tended to move in the opposite direction, said Erik Nelson, macro strategist
at Wells Fargo Securities.
"This is a huge change from what we've seen over the past few months," said Nelson.
"The increase we've seen in U.S. yields could be a really important inflection point for seeing that
equity-dollar relationship to evolve," Nelson said. "When you look at real or nominal yields, it's really
becoming increasingly attractive to own dollars rather than euros."
The yield on 10-year U.S. Treasury notes rose to 0.972% on Wednesday, up from 0.82% on Friday.
The dollar =USD was up 0.5% on Wednesday against a basket of currencies after a flat day on Tuesday
and a rise of 0.5% on Monday.
Tuesday's pause in the dollar's move showed continued restraint and caution about how beneficial the
new vaccine will be and when. Coronavirus cases are increasing daily in the U.S. and Europe.
"People are taking a little more prescripted approach to the vaccine. The news is undoubtedly
positive, but of course we need to delve into the detail and think about the ramifications of the whole
process," said Jeremy Stretch, head of G10 FX strategy at CIBC Capital Markets. "We need to remember that
this is a vaccine which is unproven in terms of certification."
The euro was down 0.5% on the day EUR=EBS to $1.175 against the dollar. The U.S. dollar rose 0.3% to
105.59 versus the Japanese yen JPY=EBS .
"With the global daily infections from the coronavirus accelerating yesterday, it seems that concerns
over the pandemic's economic impact may have limited further gains in equities and other risk-linked
assets," said Charalambos Pissouros, senior market analyst at JFD Group.
"It is still too early to start cheering that the COVID era is behind us," he said.
The dollar gained 0.7% against the trade-sensitive Norwegian crown to 9.087 NOK=D3 . The Aussie
dollar fell 0.3% to 0.7263 AUD=D3 .
Sentiment for the dollar got a boost on Monday after Pfizer Inc PFE.N and BioNTech 22UAy.DE said
on Monday their experimental coronavirus vaccine was 90% effective.
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Currency bid prices at 10:12AM (1512 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Dollar index =USD $93.1520 92.7260 +0.47% +0.00% +93.2000 +92.6070
Euro/Dollar EUR=EBS $1.1753 $1.1812 -0.50% +4.83% +1.1833 +1.1746
Dollar/Yen JPY=D3 105.5900 105.2650 +0.26% -2.84% +105.5900 +105.0200
Euro/Yen EURJPY= 124.08 124.36 -0.23% +1.75% +124.6700 +123.9300
Dollar/Swiss CHF=EBS 0.9180 0.9151 +0.33% -5.12% +0.9192 +0.9139
Sterling/Dollar GBP=D3 1.3207 1.3276 -0.53% -0.43% +1.3314 +1.3205
Dollar/Canadian CAD=D3 1.3058 1.3036 +0.21% +0.56% +1.3075 +1.3010
Aussie/Dollar AUD=D3 0.7263 0.7287 -0.32% +3.53% +0.7318 +0.7262
Euro/Swiss EURCHF= 1.0787 1.0809 -0.20% -0.60% +1.0824 +1.0783
Euro/Sterling EURGBP= 0.8896 0.8900 -0.04% +5.23% +0.8919 +0.8862
NZ NZD=D3 0.6867 0.6832 +0.53% +2.07% +0.6903 +0.6809
Dollar/Dollar
Dollar/Norway NOK=D3 9.0870 9.0235 +0.73% +3.62% +9.0995 +8.9780
Euro/Norway EURNOK= 10.6815 10.6467 +0.33% +8.58% +10.6955 +10.6067
Dollar/Sweden SEK= 8.6595 8.6106 +0.03% -7.36% +8.6744 +8.6003
Euro/Sweden EURSEK= 10.1773 10.1740 +0.03% -2.79% +10.1955 +10.1650