* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh
* Graphic: Trade-weighted sterling since Brexit vote http://tmsnrt.rs/2hwV9Hv
(Adds charts; updates rates, news)
By Joice Alves
LONDON, March 16 (Reuters) - Sterling edged higher against
the euro on Tuesday and erased some of its earlier losses
against the dollar after Europe's medicines watchdog said there
was no evidence AstraZeneca's COVID-19 vaccine was
unsafe.
The pound had earlier fallen 0.65% versus the dollar to a
one-week low of $1.3809 but by 1628 GMT it was down 0.1% at
$1.3885.
Against the euro, it rose 0.3% to 85.59 pence, having
earlier hit its lowest level of 86.40 pence since March 5.
Analysts attributed the morning tumble to news that Germany,
Italy and France had suspended AstraZeneca's COVID-19
shots amid safety fears, dampening euphoria in Britain over its
own swift vaccination campaign.
The European Medicines Agency (EMA) said there was no
indication that blood clot incidents in vaccinated people had
been caused by the AstraZeneca shot, but experts were assessing
that possibility.
The World Health Organization also said there was no proven
link and people should not panic. Shares in AstraZeneca,
Britain's second biggest listed company, were up 3.6%.
"The EMA briefing in addition to the reassurances from the
WHO should limit the fallout on the pound from the news
regarding the suspension of the AstraZeneca vaccine," said Jane
Foley, head of FX Strategy at Rabobank.
Britain said it had no concerns but analysts have been
cautious, saying that if the safety fears surrounding
AstraZeneca vaccine were confirmed, it could compromise
Britain's speedy inoculation programme.
Sterling has been under pressure too from the European
Union's move on Monday to start legal action against unilateral
British changes to Northern Irish trading arrangements.
However, the setback comes after sterling gained more than
5% against the dollar in the first seven weeks of the year amid
Britain's swift vaccine roll-out and declining numbers of
COVID-19 infections.
Dwindling expectations that the Bank of England will push
interest rates below zero, as well as the Brexit trade deal with
the EU agreed in December, have also supported the pound, which
rose above $1.42 on Feb. 24.
Norway, Britain and the EU said on Tuesday they had reached
a deal on catch limits for jointly managed North Sea fish stocks
following Brexit.
(Reporting by Joice Alves
Editing by Mark Heinrich)