* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
LONDON, Sept 7 (Reuters) - The dollar fell in early London
trading on Friday and was on track for a weekly loss against a
basket of currencies, even as the equity market rally ran out of
steam as sentiment was hurt by doubts about AstraZeneca's
The dollar has fallen more than 2.2% so far this month as
global market sentiment has surged on Joe Biden's U.S. election
victory and news of progress in the development of COVID-19
vaccines, lessening demand for the safe-haven currency.
But sentiment became more mixed after several scientists
raised doubts about the success rate for the vaccine developed
by British drugmaker AstraZeneca.
AstraZeneca had said on Monday that its vaccine was 70%
effective in pivotal trials, and could be up to 90% effective -
the latest in a slew of positive vaccine announcements which had
boosted investor confidence.
"Virus and vaccine news remain the main catalysts for
markets as the US calendar is empty until Monday," ING
strategists wrote in a note to clients.
"All in all, risk sentiment still appears in stabilization
mode, and the dollar may keep oscillating around 2-year lows
(the 92.00 level for DXY) today due to the lack of clear
catalysts and reduced trading volumes," they said.
At 0831 GMT, the dollar was at 91.953 versus a basket of
currencies, down 0.1% on the day and close to its lowest in
three months. Market price-action was limited on Thursday by the
Thanksgiving holiday in the United States, which will be
operating on reduced trading hours on Friday.
The Australian dollar - a liquid proxy for risk - hit its
highest in nearly three months in early London trading and was
up 0.2% at 0.7375 at 0834 GMT.
Australia's second-largest state, Victoria, which was once
the country's COVID-19 hotspot, said on Friday that it has gone
28 days without detecting new infections.
The Kiwi dollar, which is having its best month since late
2013, was up 0.1% on the day at 0.7019.
"Clearly, the biggest single risk for financial markets now
is the failure of vaccines being rolled out smoothly in Q1
2021," wrote MUFG strategist Derek Halpenny.
"The other key risk that also continues to be ignored is the
ongoing surge in COVID infections and deaths in the US," he
said, adding that if President-elect Joe Biden brings in new
lockdown restrictions while the rest of the world is recovering
next year then that provide a further reason to sell the dollar.
Dollar-yen was down 0.2% at 104.03 at 0836 GMT.
China's offshore yuan was on track for its first week of net
losses versus the dollar this month.
The euro was up 0.1% at $1.1925, having shown
little reaction to downbeat comments from the European Central
Bank's chief economist Philip Lane on Thursday.
Elsewhere, the pound was steady at $1.3369 as UK
investors watched Brexit negotiations for signs of progress. The
European Union's chief negotiator said he would travel to London
later on Friday to continue talks. Euro-sterling was steady at
89.22 pence per euro at 0844 GMT.
Bitcoin, which stabilised overnight after wiping off more
than a week's worth of gains on Thursday, was starting to fall
again in early London trading, but less steeply than in the
(Reporting by Elizabeth Howcroft; Editing by Simon