* Yen gains as Japan margin traders dump Aussie, kiwi
* Kiwi hits 2-year low vs yen, Aussie at 4-month low vs yen
* Dollar eases from 6-month highs vs major currencies
By Chikako Mogi
TOKYO, Aug 13 (Reuters) - The yen rose broadly on Wednesday,
hitting a two-year high against the New Zealand dollar, as a
tumble in high-yielding currencies forced Japanese margin traders
making leveraged bets to limit losses by dumping their holdings.
Market players are worried that Japanese day traders, who
have built up record bets favouring the Australian and New
Zealand dollars on the Tokyo Financial Exchange, are still
heavily exposed and may be forced to sell more into any drop.
The slide in major currencies against yen pulled the dollar
down about 1 yen from the day's highs at one point. Traders said
a further decline in Tokyo shares could accelerate dollar selling
against the yen, as weak stock prices dent investors' appetite
for risk. The Nikkei <> ended down 2 percent.
"There has been a buildup in their leveraged positions, so
unless there are buyers on dips there may be deep adjustments in
these currencies," said a senior dealer at a Japanese trading
firm.
The kiwi fell 2 percent at one point to a two-year low near
73.90 yen <NZDJPY=R>, while the Aussie also fell 2 percent to a
four-month low near 93 yen <AUDJPY=R>.
Falling commodities and expectations that central banks in
Australia and New Zealand will cut interest rates to bolster
growth have slammed the Aussie and kiwi as the global economy
loses steam. The euro has suffered a similar selling.
Oil prices <CLc1> fell to a three-month low of $112.72 this
week [], while gold prices fell to eight-month lows on Tuesday
as the dollar's rally triggered a sell-off in metals. []
The New Zealand dollar fell below $0.6900 <NZD=D4> to a near
one-year low, and the Australian dollar <AUD=D4> dropped to
seven-month lows against the dollar.
But the both kiwi and Aussie managed to trim losses as some
die-hard Japanese margin traders bought the currencies after the
initial sharp falls, traders said.
Data showed Australian wage growth rose more than expected
last quarter but remained below levels seen as a threat to
inflation and did not alter market expectations for a rate cut as
early as September.
The dollar fell 0.3 percent to 108.84 yen <JPY=>, after
falling as low as 108.35 yen from the day's high of 109.38 yen,
and away from a seven-month peak of 110.40 yen hit on the EBS
trading platform on Monday.
The euro was little changed at $1.4925 <EUR=>, off the day's
low of $1.4885 and also off a six-month low of $1.4815 hit on
Tuesday.
A steep drop in oil and other commodity prices has reinforced
the dollar's sharp rebound, while the currency regained strength
against the euro on clearer signs that growth is slowing in the
euro zone. The euro suffered its biggest one-day drop since
January 2001 on Friday.
The dollar index <.DXY>, which measures the U.S. currency
against a basket of six major currencies, fell 0.1 percent to
76.042, easing from a six-month high of 76.616 hit this week.
Traders were largely sceptical that the dollar would extend
its gains, given concerns about the U.S. economy and deepening
turmoil in financial markets.
"What is happening is that those who have bought commodities
and piled up carry trades are shedding their risky positions,"
said Tsutomu Soma, senior manager of foreign assets at Okasan
Securities.
"The underlying cause for that is worries about the U.S.
economy," Soma said. "As a matter of fact, few are willing to
take fresh positions."
Market reaction was limited to data on Wednesday showing
Japan's economy shrank 0.6 percent in the second quarter, as
expected. The data reinforced views the country had slipped into
a recession after its longest period of expansion since World War
Two. []
JPMorgan Chase <JPM.N> said on Tuesday it had racked up $1.5
billion of losses so far this quarter on mortgage-linked assets,
highlighting concerns that turmoil in financial markets may
deepen. []
(Additional reporting by Rika Otsuka)
