* GBP recoups plunge; leaders" meeting in Brussels in focus * Declining dollar pauses for breath as virus jitters support * Graphic: World FX rates in 2020 tmsnrt.rs/2RBWI5E By Kevin Buckland and Tom Westbrook TOKYO/SINGAPORE, Dec 8 (Reuters) - Sterling on Tuesday clung to hopes of a meeting between British Prime Minister Boris Johnston and European Commission President Ursula von der Leyen salvaging a Brexit trade deal, while worry about surging infections put a brake on the dollar"s decline. The British currency recouped most of a sharp Monday drop after the announcement of the meeting in Brussels and late in the Asia session sat at $1.3350, well above Monday"s trough of $1.3225 even though it weakened a little bit during the day. Other majors were broadly steady. "The thought process is Boris is not going to Brussels to come back without a deal," said Chris Weston, head of research at Melbourne brokerage Pepperstone. The face-to-face meeting is one of the last rolls of the dice before Britain"s trade privileges with the European Union expire at the end of the month and derivatives trade suggests investors are braced for a rollercoaster ride. One-week implied volatility for the pound made a fresh eight-month high on Tuesday. The premium of pound puts to calls is also elevated, as traders hedge against a no-deal outcome, although it has tempered slightly since Monday. Against the euro, the pound was under gentle pressure at 90.76 pence and some nerves were evident. "Sterling is still a bit too high," said Masafumi Yamamoto, chief currency strategist at Mizuho Securities, who sees cable at $1.32 at year-end and $1.30 by the end of next March. "The market is still too complacent about the risk of a break-up," he added. "I expect sterling to decline next year even with a deal, because the UK"s situation won"t be as favourable as in the past." The pound might fall sharply if no deal is thrashed out before an EU summit begins on Thursday. ANY EXCUSE Elsewhere, concern at surging coronavirus cases in the United States cast a shadow over optimism about vaccinations and fiscal support for the U.S. economy - sapping bulls" momentum. Against a basket of currencies, the greenback edged higher to 90.861 and the Australian and New Zealand dollars took a breather and held near recent peaks. The euro sat at $1.2114. "We continue to see the broad dollar under pressure, said OCBC Bank strategist Terence Wu. "However, there seems to be some fatigue setting in, with the upside momentum for the likes of euro and Aussie fading somewhat ... any negative headlines may provide an excuse for a risk-off tilt." In Asia, that came from a coronavirus surge in South Korea that stalled a rising won and wobbled the Kospi stock index. In the United States, California has shut all but critical infrastructure and retail operations in its worst-hit areas as U.S. COVID-19 infections are at their peak, with an average of 193,863 new cases reported each day over the past week. Anthony Fauci, the U.S. government"s top infectious disease expert, warned mid January "can be a really dark time for us" if gatherings over the forthcoming holiday season spur even greater spread of the virus. The U.S. Congress will vote this week on a stopgap funding bill to provide more time for lawmakers to reach a deal on a bigger COVID-19 relief package. That could renew dollar selling by improving investors" appetite for riskier currencies. But after so many false dawns on the stimulus front traders were content to wait and see. Later on Tuesday business sentiment surveys in Germany and the United States are due and will offer some sense of how deeply the latest wave of COVID-19 has hurt consumers" mood. ======================================================== Currency bid prices at 1:13PM in Singapore (0513 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar $1.2115 $1.2109 +0.06% +8.07% +1.2116 +1.2105 Dollar/Yen 104.0500 104.0700 -0.04% -4.22% +104.0850 +104.0300 Euro/Yen 126.05 125.99 +0.05% +3.37% +126.0600 +125.8700 Dollar/Swiss 0.8909 0.8909 +0.01% -7.92% +0.8912 +0.8898 Sterling/Dollar 1.3350 1.3383 -0.25% +0.66% +1.3372 +1.3344 Dollar/Canadian 1.2787 1.2800 -0.09% -1.56% +1.2808 +1.2787 Aussie/Dollar 0.7427 0.7419 +0.11% +5.85% +0.7429 +0.7411 NZ 0.7040 0.7042 +0.00% +4.65% +0.7043 +0.7027 Dollar/Dollar All spots Tokyo spots Europe spots Volatilities Tokyo Forex market info from BOJ (Reporting by Kevin Buckland in Tokyo and Tom Westbrook in Singapore; Editing by Christopher Cushing and Richard Pullin)