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

 (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 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 rose 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 start 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 was last up 0.972% up from 0.82% on Friday.
    The dollar was up 0.3% on Wednesday against a basket of currencies after a flat day on Tuesday
and a rise of 0.5% on Monday.
    Stocks were up in the United States and Europe with the tech-heavy Nasdaq advancing 2%, the
S&P 500 up nearly 1% and the pan-European STOXX 600 adding 1% to bring its gain for the week to 6%.
    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.
    "The (vaccine) 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 0.3% on the day to $1.177 against the dollar. The U.S. dollar rose 0.3% to
105.46 versus the Japanese yen.    
    "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 9.084. The Aussie
dollar fell 0.2% to 0.7276.
    The Canadian dollar was weaker against the greenback, at C$1.3069 to the U.S. dollar. 
    Sentiment for the dollar got a boost on Monday after Pfizer Inc and BioNTech said
on Monday their experimental coronavirus vaccine was 90% effective.
    Currency bid prices at 2:46PM (1946 GMT)
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change                 
 Dollar index                 $93.0240       92.7260     +0.34%         +0.00%      +93.2100    +92.6070
 Euro/Dollar                  $1.1771        $1.1812     -0.34%         +5.00%      +1.1833     +1.1745
 Dollar/Yen                   105.4550       105.2650    +0.36%         -2.74%      +105.6700   +105.0200
 Euro/Yen                     124.17         124.36      -0.15%         +1.82%      +124.6700   +123.9300
 Dollar/Swiss                 0.9171         0.9151      +0.23%         -5.21%      +0.9192     +0.9139
 Sterling/Dollar              1.3211         1.3276      -0.48%         -0.38%      +1.3314     +1.3189
 Dollar/Canadian              1.3069         1.3036      +0.26%         +0.61%      +1.3075     +1.3010
 Aussie/Dollar                0.7276         0.7287      -0.15%         +3.70%      +0.7318     +0.7261
 Euro/Swiss                   1.0799         1.0809      -0.09%         -0.49%      +1.0824     +1.0783
 Euro/Sterling                0.8908         0.8900      +0.09%         +5.37%      +0.8919     +0.8862
 NZ                           0.6878         0.6832      +0.67%         +2.21%      +0.6903     +0.6809
 Dollar/Norway                9.0835         9.0235      +0.67%         +3.56%      +9.0995     +8.9780
 Euro/Norway                  10.6870        10.6467     +0.38%         +8.63%      +10.6955    +10.6067
 Dollar/Sweden                8.6464         8.6106      +0.06%         -7.50%      +8.6744     +8.6003
 Euro/Sweden                  10.1800        10.1740     +0.06%         -2.76%      +10.1955    +10.1650
 (Reporting by David Henry in New York and Olga Cotaga in London
Editing by Nick Zieminski and Cynthia Oterman)