FOREX-Yen plunges as traders add risk for future with vaccine, Biden

    * Dollar gains vs Japanese yen
    * Euro slides against greenback
    * Aussie dollar, Norwegian krone strengthen
    * Graphic: World FX rates in 2020

 (Recasts, adds comments, updates prices)
    By David Henry
    NEW YORK, Nov 9 (Reuters) - Traders unloaded Japanese yen and bought riskier currencies and the U.S.
dollar on Monday as market confidence in the economy and world trade increased with progress on a COVID-19
vaccine and the prospect of Joe Biden being U.S. president.
    The yen, which had become a favored safe-haven, suffered its biggest loss against the U.S.
dollar since March, with the greenback rising as much as 2.2%. So-called "risk-on" currencies, such as the
Australian dollar and Norwegian krone, strengthened even more.
    The moves came after Biden announced his first steps as president and Pfizer Inc's and its
German partner BioNTech SE announced that their experimental COVID-19 vaccine was more than 90%
effective in initial trial results in what experts said could be a turning point toward halting the
    A Biden presidency is expected to shore up international trade through steady policies and the
prospect of a successful coronavirus vaccine is seen as a major tailwind.
    Much of the move in the yen was an unwinding of earlier trades, said Mazen Issa, senior fx strategist,
at TD Securities. "There were a lot of long-yen positions built into the FX markets going into the
election," he said.
    But the U.S. dollar also gained 0.41% against the euro as markets became more confident that
the vaccine could allow the U.S. economy to grow fast enough to drive up interest rates.
    "All of this may be leading to a narrative of U.S. exceptionalism and capital flows into the U.S.
returning," Issa added.    
    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.
"We're seeing a big reflation trade here."
    Joseph Trevisani, senior analyst,, said higher interest rates could support the dollar.
"Normally, when the U.S. economy does well that supports the dollar. We have not been seeing much of that
in the COVID era."
    Bond yields soared in the United States and Europe, and major stock indexes
gained as much as 4%.
    The U.S. dollar gained 0.57% to 92.695 against a basket of currencies, after last week
touching a 10-week low of 92.12.
    Currency bid prices at 3:12PM (2012 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
                                              Session Euro/Dollar                  $1.1829        $1.1877     -0.40%         +5.51%      +1.1920     +1.1795
 Dollar/Yen                   105.4000       103.2800    +2.05%         -2.96%      +105.6400   +103.3000
 Euro/Yen                     124.67         122.69      +1.61%         +2.23%      +125.1300   +122.7000
 Dollar/Swiss                 0.9127         0.9003      +1.37%         -5.69%      +0.9136     +0.8985
 Sterling/Dollar              1.3172         1.3150      +0.17%         -0.68%      +1.3206     +1.3119
 Dollar/Canadian              1.2983         1.3064      -0.60%         -0.05%      +1.3062     +1.2928
 Aussie/Dollar                0.7296         0.7261      +0.49%         +3.98%      +0.7340     +0.7267
 Euro/Swiss                   1.0795         1.0686      +1.02%         -0.53%      +1.0807     +1.0681
 Euro/Sterling                0.8979         0.9023      -0.49%         +6.21%      +0.9048     +0.8981
 NZ                           0.6832         0.6773      +0.90%         +1.56%      +0.6854     +0.6785
 Dollar/Norway                9.0110         9.1490      -1.26%         +2.99%      +9.1620     +8.9690
 Euro/Norway                  10.6678        10.8500     -1.68%         +8.44%      +10.9079    +10.6582
 Dollar/Sweden                8.6110         8.6393      -0.72%         -7.88%      +8.6509     +8.5572
 Euro/Sweden                  10.1878        10.2616     -0.72%         -2.69%      +10.2816    +10.1819


 (Reporting by David Henry in New York and Olga Cotaga in London; Editing by Mark Heinrich and Marguerita