The safe-haven yen rallied and the South African rand tumbled on Friday as investors turned cautious after Britain raised the alarm over a newly identified coronavirus variant spreading in the African nation. The yen leapt as much as 0.56% to 114.68 per dollar, while the rand slumped to a more than one-year trough at 16.17 per dollar as concern flared about the B.1.1.529 variant, which might make vaccines less effective. The euro rose 0.12% to $1.12185, stabilising after hitting its lowest level in nearly 17 months earlier in the week at $1.1186. Germany is considering following Austria's lead and reimposing a COVID-19 lockdown with the continent once again the epicentre of the pandemic. The dollar index - which measures the greenback against six peers, including the yen, euro and pound sterling - edged further away from Wednesday's 96.938 - its highest level in nearly 17 months. It last traded at 96.715. Traders have ramped up bets that an increasingly hawkish Federal Reserve will lift rates by the middle of next year, while central banks in Europe, Japan and elsewhere stick to more dovish stances. Overnight, minutes from the European Central Bank's October meeting showed most policymakers leaning toward continued stimulus and a cautious approach to any policy changes, despite the pressure from heated inflation. By contrast, money markets are pricing for a Fed rate hike by July, with good odds it could come in June.