FOREX-Yen extends broad slide as stocks rebound

TOKYO, March 15 (Reuters) - The yen extended a broad slide against major currencies on Thursday after a recovery in U.S. and Japanese stock markets alleviated fears that more investors may cut back on risky positions in their portfolios.

Traders said the Nikkei share average's .N225 0.7 percent climb would likely put more pressure on the yen as market players cautiously return to selling low-yielding currencies like the yen for higher-yielding currencies and assets in carry trades.

Worries about a sharp slowdown in the U.S. economy on mounting troubles in the mortgage and housing market have prompted many investors to pare back risky positions, including holdings of stocks and carry trades financed with the yen.

But the rebound in U.S. stocks, particularly in financial-related shares that have been hard hit in the sell-off that began in late February, helped to soothe nerves.

"The risk reduction prompted by concerns about a credit crunch from the shaky U.S. subprime mortgage market has run its course, and that's why the yen has been sold broadly again," said Minoru Shioiri, senior manager of FX trading at Mitsubishi UFJ Securities.

"But worries about the health of the U.S. economy are still there to cap the dollar's gains," Shioiri said.

The dollar inched up to 117.20 JPY=, up slightly on the day from near 117.05 in late New York trade, recovering more than 1 percent from the overnight low of 115.76 yen. The U.S. currency rose as high as 117.58 yen in early trade.

The euro rose to 154.95 EURJPY=R, having pushed up from a low of 152.67 yen hit the previous day. The single currency was little changed at $1.3222 after edging up to a peak $1.3246 EUR= on Wednesday.