* Dollar stabilises after gaining on vaccine news
* Yen trades near Monday levels
* Swiss franc recovers some losses
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
(Updates prices, adds commentary)
By David Henry
NEW YORK, Nov 10 (Reuters) - The dollar was steady on Tuesday and the yen stayed low, as investors
remained optimistic about progress towards a COVID-19 vaccine and the currency markets digested the big
moves of Monday.
U.S. drugmaker Pfizer Inc PFE.N and German partner BioNTech SE BNTX.O said on Monday a large-scale
clinical trial showed their vaccine was more than 90% effective in preventing COVID-19 - news which lifted
global markets with a wave of risk appetite. The dollar's rise on Monday of 0.5%, analysts said, was caused by investors quitting long positions in
other major safe-haven currencies such as the Japanese yen and the Swiss franc. The dollar was flat against a basket of major currencies, near its previous session's highs, as market
participants declined to push it further in light of uncertainty about how or when a vaccine could be
rolled out. "Today is a little bit of a cool off from what we've seen in this past couple of days," said Minh
Trang, senior FX trader at Silicon Valley Bank. "I don't mind a little bit of a breather. November has
been very, very interesting."
Neil Jones, head of FX sales for financial institutions at Mizuho, said he expected the risk-on moves
to hold.
"I don't think it's over and don't think the foreign exchange market will become completely
skeptical," he said.
"We need more clarity in terms of the distribution, quantities, timeline, and to whom," Jones said.
"On balance, that optimism will remain for now."
The dollar had lost around 1.4% this month until Democrat Joe Biden's victory in the U.S. presidential
election became apparent over the weekend. The Japanese yen, which had its biggest one-day fall since March after the vaccine announcement, was
little changed Tuesday morning in New York at 105.34 JPY=D3 yen to the dollar. The yen had initially
clawed back some of its from the day before.
The Swiss franc CHF=EBS gained marginally, with the dollar rising 0.1% to 0.915 francs after
Monday's 1.5% gain.
"Following a euphoric market reaction such as that the question that now arises is whether it was
justified or possibly exaggerated," wrote Commerzbank FX and EM analyst You-Na Park-Heger in a note to
clients.
Euro-dollar was broadly flat at $1.1813. In the previous session, it rose to as high as $1.192, but
went no further, which Mizuho's Jones said could be due to the European Central Bank having signalled its
awareness of the downsides of rapid euro strength EUR=EBS . "The market is a little bit concerned about repeat verbal intervention in the euro around the 1.20
area so I think sellers maybe dropped their offers down lower than that 1.20, thinking that that might be
the limit of the upside," Jones said.
The Australian dollar - seen as a liquid proxy for risk appetite - was off nearly 0.3% versus the
dollar, giving back its jump in the immediate aftermath of the vaccine news. AUD=D3 .
The New Zealand dollar was off 0.1% and poised to end its streak of seven consecutive session of gains
NZD=D3 .
China's offshore yuan, which has been gradually strengthening since May, was flat on Tuesday after
hitting 2.5-year highs versus the U.S. dollar on Monday. CNH=EBS .
President Donald Trump plans to push ahead with legal challenges to the election results and will hold
a series of campaign-style rallies to build support. Currency bid prices at 9:57AM (1457 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Previous Change
Session
Euro/Dollar EUR=EBS $1.1813 $1.1814 +0.00% +5.38% +1.1843 +1.1780
Dollar/Yen JPY=D3 105.3400 105.3600 -0.10% -3.10% +105.4800 +104.8300
Euro/Yen EURJPY= 124.43 124.45 -0.02% +2.03% +124.5200 +124.0000
Dollar/Swiss CHF=EBS 0.9151 0.9138 +0.12% -5.46% +0.9175 +0.9116
Sterling/Dollar GBP=D3 1.3261 1.3162 +0.76% -0.01% +1.3271 +1.3154
Dollar/Canadian CAD=D3 1.3018 1.3007 +0.10% +0.22% +1.3050 +1.2998
Aussie/Dollar AUD=D3 0.7262 0.7282 -0.27% +3.49% +0.7294 +0.7253
Euro/Swiss EURCHF= 1.0808 1.0787 +0.19% -0.41% +1.0822 +1.0783
Euro/Sterling EURGBP= 0.8905 0.8971 -0.74% +5.33% +0.8983 +0.8885
NZ NZD=D3 0.6808 0.6817 -0.12% +1.19% +0.6839 +0.6808
Dollar/Dollar
Dollar/Norway NOK=D3 8.9995 9.0340 -0.40% +2.58% +9.0535 +8.9970
Euro/Norway EURNOK= 10.6322 10.6685 -0.34% +8.07% +10.6992 +10.6150
Dollar/Sweden SEK= 8.6192 8.6282 -0.01% -7.80% +8.6527 +8.6025
Euro/Sweden EURSEK= 10.1820 10.1835 -0.01% -2.74% +10.2145 +10.1759
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
USDJPY https://tmsnrt.rs/3nf1O7r
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>