* Currencies little moved on coronavirus vaccine progress * Growing unease about current rise in new infections * Traders in Asia focus on yuan's rise against greenback By Stanley White TOKYO, Nov 17 (Reuters) - The dollar steadied against most currencies on Tuesday as a return of coronavirus restrictions in some U.S. states and worries about a smooth transition for President-elect Joe Biden offset optimism about a coronavirus vaccine. Meanwhile sterling edged higher on media reports Britain could reach a post-Brexit trade agreement with the European Union by early next week. Drugmaker Moderna became the second U.S. pharmaceutical company in a week to report positive results from trials of a COVID-19 vaccine, considered necessary to eradicate the pandemic. Last week, encouraging progress in vaccine testing helped the dollar rise against the safe-harbour yen and the Swiss franc. However, reaction in the currency market to subsequent developments has been subdued as the United States struggles to contain a second wave of infections, and with vaccine distribution not expected any time soon. There is also some uncertainty about Biden's plans to tackle the coronavirus and stimulate the economy as the Trump administration resists cooperation with Biden's transition team. "The market reaction has been limited because it will take time to distribute the vaccine, and there is uncertainty about U.S. politics," said Masafumi Yamamoto, chief foreign exchange strategist at Mizuho Securities in Tokyo. "Unless we clear that hurdle, the dollar won't rise. The dollar looks particularly weak against the yuan." The dollar was quoted at $1.1857 per euro, on course for its fourth straight session of declines. Sterling was quoted at $1.3213 and also edged up to 89.71 pence per euro. The greenback held steady at 104.50 yen. Investors in the dollar are looking ahead to the release of U.S. retail sales and industrial production later on Tuesday to gauge the health of the economic recovery. However, policymakers' response to a record number of coronavirus cases, hospitalisations, and deaths in several U.S. states is likely to remain of greater concern. The dollar index against a basket of major currencies stood at 92.532, close to a one-week low. New infections are also increasing in Britain, Europe, and Japan, further clouding the economic outlook. The Australian dollar held onto overnight gains against the greenback, while the New Zealand dollar hit its strongest in more than a year as investors scaled back bets for additional interest rate cuts. Minutes from the Reserve Bank of Australia's most recent policy meeting showed the central bank was ready to provide yet more policy stimulus if needed after cutting rates to record lows. The onshore yuan hit a new 28-month high of 6.5623 as positive economic data continues to support the Chinese currency. ======================================================== Currency bid prices at 3:35PM (0635 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar $1.1857 $1.1852 +0.05% +5.77% +1.1867 +1.1851 Dollar/Yen 104.5000 104.5250 -0.03% -3.80% +104.5750 +104.4400 Euro/Yen 123.92 123.93 -0.01% +1.62% +124.0200 +123.8700 Dollar/Swiss 0.9122 0.9124 -0.02% -5.73% +0.9128 +0.9117 Sterling/Dollar 1.3213 1.3202 +0.08% -0.38% +1.3233 +1.3192 Dollar/Canadian 1.3078 1.3073 +0.05% +0.69% +1.3080 +1.3065 Aussie/Dollar 0.7315 0.7321 -0.08% +4.25% +0.7330 +0.7312 NZ 0.6896 0.6905 -0.10% +2.51% +0.6918 +0.6894 Dollar/Dollar All spots Tokyo spots Europe spots Volatilities Tokyo Forex market info from BOJ (Reporting by Stanley White; Editing by Sam Holmes and Kenneth Maxwell)
Our Standards: The Thomson Reuters Trust Principles.