* Aussie dollar skyrockets vs Japanese yen
* Dollar index stays relatively calm
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
(Recasts, adds latest COVID-19 news, comments, updates prices)
By David Henry
NEW YORK, Nov 9 (Reuters) - Increased risk appetite buoyed
trade-related currencies amid more optimism for the world
economy on Monday after Joe Biden clinched the U.S. presidency
and Pfizer Inc PFE.N said its experimental vaccine was more
than 90% effective in preventing COVID-19.
The Japanese yen and Scandinavian currencies were among the
biggest movers, while the offshore Chinese yuan hit its
strongest in 28 months.
The safe-haven yen gave way to the new optimism, weakening
to its lowest level in more than two weeks, while the yuan
strengthened on confidence in more trade.
A Biden presidency is expected to shore up international
trade relations and the prospect of a successful coronavirus
vaccine is seen as a major tailwind, with global cases
continuing to rise. The vaccine news "provided just a tremendous boost for risk
appetite," said Ed Moya, senior market analyst at foreign
exchange broker OANDA. "There was a lot of nervousness in investors' expectations
for these vaccine trial results, and the first one out of the
gates had an amazing 90% effective rate, far exceeding the
consensus," Moya said. "The last remaining risk event of the
year, it seems like it has been taken off the table. We're
seeing a big reflation trade here."
Bond yields soared in the United States and Europe
and major stock indexes gained as
much as 4%. The vaccine news, said Simon Harvey, currency analyst at
broker Monex Europe, "helped boost global growth expectations
which took a substantial knock only weeks ago with second wave
concerns."
Also benefiting were the Norwegian and Swedish crowns and
other currencies which react more quickly to economic changes.
The Swedish crown rose to a 28-month high against the dollar
and the euro. It traded at 8.6014 SEK=D3 versus the U.S.
dollar and reached a 22-month high against the euro EURSEK=D3 .
Its Norwegian counterpart strengthened 1.54% against the
dollar and rose against the euro as well, to touch two-month
highs against each. NOK=D3 EURNOK=D3 .
The Australian dollar was up 2.5% at 76.94 against the
Japanese yen, a seven-week high AUDJPY=D3 . The yen also fell
1.6% against the U.S. dollar to 105 JPY=EBS .
The offshore Chinese yuan CNH=EBS was not far behind,
hitting a peak of 6.5501 against the dollar and last up 0.12% at
6.6012.
The Canadian and Australian dollars both rose as much as
0.8% versus the U.S. dollar, with the latter AUD=D3 hitting a
seven-week high and the former a nine-month high CAD=D3 .
Amid those changes, the dollar stabilised against a basket
of currencies =USD , having touched a 10-week low of 92.12, and
was last up 0.4% at 92.561.
========================================================
Currency bid prices at 10:17AM (1517 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.1860 $1.1877 -0.13% +5.80% +1.1920 +1.1853
Dollar/Yen JPY=D3 105.2250 103.2800 +1.91% -3.10% +105.3800 +103.3000
Euro/Yen EURJPY= 124.78 122.69 +1.70% +2.32% +125.1300 +122.7000
Dollar/Swiss CHF=EBS 0.9105 0.9003 +1.14% -5.90% +0.9110 +0.8985
Sterling/Dollar GBP=D3 1.3163 1.3150 +0.11% -0.75% +1.3206 +1.3121
Dollar/Canadian CAD=D3 1.2958 1.3064 -0.77% -0.22% +1.3062 +1.2928
Aussie/Dollar AUD=D3 0.7309 0.7261 +0.67% +4.17% +0.7340 +0.7267
Euro/Swiss EURCHF= 1.0797 1.0686 +1.04% -0.49% +1.0799 +1.0681
Euro/Sterling EURGBP= 0.9007 0.9023 -0.18% +6.54% +0.9048 +0.9005
NZ NZD=D3 0.6822 0.6773 +0.74% +1.40% +0.6854 +0.6785
Dollar/Dollar
Dollar/Norway NOK=D3 9.0095 9.1490 -1.54% +2.69% +9.1620 +8.9690
Euro/Norway EURNOK= 10.6860 10.8500 -1.51% +8.62% +10.9079 +10.6669
Dollar/Sweden SEK= 8.6014 8.6393 -0.60% -7.98% +8.6509 +8.5572
Euro/Sweden EURSEK= 10.1997 10.2616 -0.60% -2.57% +10.2816 +10.1833