* Gains in oil, stocks help lift risk appetite
* Euro gains just 1 pct vs dlr but 7 pct vs yen in H1
* Japan exporters seen buying yen before end of month
* Sterling jumps to 8-month high vs dollar
By Rika Otsuka
TOKYO, June 30 (Reuters) - The dollar slipped on Tuesday as
higher oil, gains in share prices and better-than-expected
sentiment in the euro zone boosted hopes for a global recovery,
sharpening investors' appetite for risk.
Currencies of commodity producers such as the Australian
dollar rose as oil prices <CLc1> surged above $73 per barrel to
hover near an eight-month high. []
Foreign currency buying linked to recent launches of new
Japanese mutual funds pushed down the yen across the board in
early Asian trade, though it later trimmed losses as some locked
in profits from a rally in other currencies the previous day.
"Optimism over the global economy is coming back," said
Hideki Hayashi, a global economist at Mizuho Securities.
"More stable financial markets prompt investors to shift
funds to the euro, sterling and the Aussie from the dollar."
The dollar index, which measures the dollar against a basket
of six currencies, fell 0.2 percent to 79.680 <.DXY>.
The euro gained 0.2 percent to $1.4111 <EUR=>, extending
gains made the previous day when a survey by the European
Commission showed economic sentiment in the euro zone improved
more than expected in June. []
Short-term speculators have also been pushing up the
euro/dollar, trying to test the upside after the euro found
support below $1.40 on Monday and did not slide further, said
Daisuke Uno, chief strategist at Sumitomo Mitsui Banking Corp.
Still, the European single currency only gained about 1
percent overall against the greenback in the first half of this
year, after losing ground sharply in the first quarter.
Sterling jumped to an eight-month high of $1.6703 <GBP=D4>.
Earlier, the GfK/NOP consumer confidence survey showed British
consumer morale improved to its best in 14 months. []
Sterling has jumped 14 percent against the dollar so far this
year as investors have bought back risky assets that they dumped
in panic during the height of the financial crisis.
The Australian dollar advanced 0.5 percent to $0.8118
<AUD=D4> and was also poised to end the half year up more than 14
percent.
The dollar dipped 0.4 percent to 95.70 <JPY=> after rising as
high as 96.33 yen on trading platform EBS. It has gained less
than 6 percent on the yen since the start of the year.
Japanese exporters appeared to be buying the yen as the month
drew to a close, helping the yen in afternoon trade, said a
senior trader at a big Japanese bank.
The euro rose near to 136 yen in early Asian trade on
Japanese mutual fund buying, then eased to 135.26 <EURJPY=>,
almost unchanged from late U.S. trade on Monday. It has gained
about 7 percent against the yen in the half year.
WAITING FOR MORE CLUES
But in a sign that investor confidence is still inconsistent,
Japanese mutual funds investing in domestic and overseas assets
launched on Tuesday totalled just 4.57 billion yen ($47.6
million), according to data compiled by Reuters, less than
expected.
The Australian and New Zealand dollars stayed buoyant against
the yen, though they pared earlier gains, as the market in
uridashi bonds, or foreign bonds sold to Japanese retail
investors, picked up.
A total of A$838 million in uridashi bonds was issued in
June, up from A$322 million in May, while NZ$519 million in
uridashi bonds were issued, jumping from NZ$72 million in May,
according to Reuters data. []
Tokyo's Nikkei share average <> rose 1.8 percent amid
growing optimism that the recession may be easing. []
Activity was subdued, with many investors reluctant to move
ahead of important economic events such as the Bank of Japan's
quarterly tankan survey on Wednesday, a European Central Bank
policy meeting and the U.S. government's monthly employment
report.
($1=96.06 Yen)
(Additional reporting by Aiko Hayashi; Editing by Michael
Watson)
