* Euro gets a lift from upbeat IFO survey
* Yen knocked off six-week highs vs dollar
* Dollar slips as yield appeal weakens
* Graphic: World FX rates in 2019 tmsnrt.rs/2egbfVh (Updates throughout)
By Sujata Rao
March 25 (Reuters) - The euro rose on Monday after a better-than-expected business confidence survey from Germany relieved markets of some of their economic growth worries and knocked the safe-haven yen off six-week highs to the dollar.
World markets were buffeted on Friday by fears of economic recession fanned by inversion of the U.S. bond yield curve. That sapped demand for higher-yield, growth-reliant assets and drove investors toward “safe” destinations such as the Japanese yen and gold.
However, sentiment took a turn for the better after Germany’s IFO Institute said its business climate index rose to 99.6 from an upwardly revised 98.7 in the previous month. This beat a consensus forecast for a reading of 98.5.
As the data lifted German 10-year yields back into positive territory and helped up European shares, the single currency also benefited, rising 0.2 percent to a session-high of $1.13230 , having traded flat earlier in the day and falling sharply on Friday after gloomy manufacturing PMI data.
Against the yen, the single currency surged 0.46 percent to a high of 124.81, having traded as low as 123.90.
“At the end of last week, we had a situation where fear of global recession was extremely high, so the IFO is a good opportunity to take a bit of a reality check,” Commerzbank strategist Ulrich Leuchtmann said, noting a recession was unlikely in the near term in the euro zone or the United States.
“I wouldn’t say the dash for safe assets is over. The tone of general risk-off sentiment will prevail for a while but not to the same extent (as Friday).”
The earlier rush for safety had driven Japanese 10-year government bond yields to 31-month lows while the yen traded as high as 109.70 against the greenback, a six-week high. But it eased a quarter percent after the IFO to 110.215 .
The dollar meanwhile lost 0.10 percent against a basket of currencies to around 96.5 DXY>. It enjoyed no benefit from news that U.S. Attorney General William Barr had said U.S. Special Counsel Robert Mueller found no evidence of collusion between Russia and President Donald Trump’s election campaign team.
The dollar, with the highest yields in the G10, has been favoured by investors for many months. Last week saw “long” positions on the dollar hit a 2019 high, according to calculations by Reuters and data from the Commodity Futures Trading Commission
The easing growth concerns lifted the growth-reliant Australian and Canadian dollars around 0.2 percent against the greenback.
The British pound lost 0.3 percent against the dollar and 0.4 percent to the 0euro as the UK parliament prepared to try and wrest control of the Brexit process in a series of votes planned for later in the day . (Reporting by Sujata Rao Editing by Mark Heinrich)