SYDNEY (Reuters) - The Japanese yen edged higher on Friday as investors crept back in to the safe-haven currency on concerns that successful tests of a COVID-19 vaccine may not be enough to offset the economic damage of a trying winter in Europe and the United States.
The yen rose 0.2% to 104.89 per dollar in the Asia session, its highest since Monday when it tumbled after Pfizer announced that it had developed a working virus vaccine.
The yen remains down by about 1.5% against the dollar this week, its sharpest weekly drop in five months, and softer on most crosses. But the bounce from its lows - along with softness in riskier currencies - shows plenty of caution still remains.
The Aussie slipped 0.1% to $0.7224 and is headed for a small weekly loss. The kiwi was down 0.2% at $0.6824 though is headed for a weekly gain of 0.7% as investors reckon economic improvements have reduced the chance of negative rates.
The euro rose marginally overnight to clamber back over $1.18, but it is down about 0.6% for the week so far, helping the dollar index to a 0.7% weekly rise. The Chinese yuan was marginally weaker at 6.6219 per dollar.
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