FOREX-Yen rises broadly as risk appetite fades
* Yen hits 3-wk high vs dollar, 1-mth peak vs euro
* Aussie dips to 1-mth lows vs dollar and yen
TOKYO, June 23 (Reuters) - The yen rose broadly on Tuesday to hit one-month peaks against the euro and Australian dollar as investors kept cutting riskier assets including higher-yielding currencies.
The dollar also gained versus the euro and most other major currencies after a broad sell-off in U.S. stocks as doubts grew about a nascent economic recovery, highlighted by a gloomy World Bank report which dampened market sentiment.
Commodity-linked currencies such as the Aussie fell against the dollar and the yen as oil prices remained on the defensive in Asian trade after a near 4 percent drop the previous day to below $67 a barrel.
Traders hesitated to go into two-day Federal Reserve policy meeting this week short on the greenback and ahead of a record sale of U.S. Treasury two-year notes later on Tuesday which could add to market volatility.
"The market looks to be in a corrective phase before the half-year end, meaning the dollar and the yen are likely to be supported," said Kosuke Hanao, head of treasury product sales at HSBC in Tokyo.
The dollar fell as low as 95.19 yen on trading platform EBS, a three-week low, before trading at 95.54 yen, down 0.3 percent from late New York trade on Monday. The euro fell as low as 132.00 yen on EBS, its lowest since late May, and now at 132.32 yen, down 0.4 percent.
The euro slid 0.1 percent to $1.3848 EUR=.
The Australian dollar dropped to one-month lows against the dollar and the yen with investors liquidating long positions in riskier assets ahead of the end of the first half of 2009, traders said.
The Aussie fell as low as $0.7810, its lowest since late May, before trading at $0.7836 AUD=D4, down 0.4 percent on the day. It slid near 74.50 yen before rebounding to 74.76 yen AUDJPY=R, still down 0.6 percent. (Editing by Michael Watson)
