* Yen briefly falls below 95 yen per dlr <JPY=>, 1-wk low
* Dollar holds ground on hopes for U.S. recovery
* June euro zone new orders up 3.1 pct m/m, beats forecasts
(Updates prices)
By Tamawa Desai
LONDON, Aug 24 (Reuters) - The yen slid versus both the
dollar and euro on Monday as gains in equities boosted risk
sentiment, steering investors towards higher-yielding currencies
such as the Australian dollar.
The market refocused on risk-taking after Friday's
stronger-than-expected U.S. existing home sales data and upbeat
comments from Federal Reserve Chairman Ben Bernanke.[]
The low-yielding yen tends to fall against higher-yielding
currencies when equities rise or economic data strengthens hopes
for a recovery in the global economy.
But the dollar, which usually also declines when risk
sentiment picks up, held its ground against some major
currencies.
"The dollar is holding up quite well which tends to suggest
risk reward is gradually moving in favour of long-dollar
positions on expectations for a stronger U.S. recovery," said
Lee Hardman, currency economist at Bank of Tokyo-Mitsubishi UFJ.
By 1058 GMT, the dollar was up 0.5 percent against the yen
on the day at 94.85 yen <JPY=>, after briefly hitting a one-week
high of 95.06 yen, according to Reuters data. It hit a one-month
low of 93.42 yen on trading platform EBS on Friday.
The euro was up 0.4 percent at 135.74 yen <EURJPY=>.
Nonetheless, central bankers at a conference in Jackson Hole
over the weekend warned against exiting too early from loose
monetary policies. []
"The message is that rates would remain low and liquidity
would remain ample, so swings in risk appetite remain a major
factor for major currency pairs," said Michael Klawitter,
currency strategist at Commerzbank.
The euro pared losses against the dollar after euro zone
industrial orders came in much higher than expected.
Euro zone industrial orders rose 3.1 percent in June from
the previous month, beating forecasts for a 1.5 percent gain.
[]
The euro was flat on the day at $1.4308 <EUR=>.
European shares were up 0.5 percent by midday trade <FTEU3>.
Traders are keen to see how the euro zone economy fares,
especially after higher-than-expected purchasing managers' index
readings last week. Germany's Ifo survey will be closely-watched
this week, analysts said.
U.S. data will also be in focus. The Conference Board will
release its August consumer confidence index on Tuesday and
Reuters/University of Michigan will report on its late August
snapshot of consumer sentiment on Friday.
U.S. new home sales, durable goods orders and revised
second-quarter gross domestic product are all due out this week.
Signs of some stabilisation in Chinese equities also
supported higher-yielding currencies. Shanghai Composite Index
ended 1.1 percent higher <>.
The Australian dollar rose 0.7 percent to 79.66 yen
<AUDJPY=R> while it gained 0.6 percent versus the U.S. dollar to
stand at $0.8402 <AUD=>.
(Editing by Stephen Nisbet and Lin Noueihed)
