FOREX-Yen gains as risk appetite ebbs, dollar holds above recent lows

* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
* Safe-haven yen lifted by broad decline in stock markets
* EUR stalls as Trump considers sanctions over Russia gas
pipeline
* Brexit woes weigh on pound, crude oil slump hits Aussie,
loonie
* Dollar takes increasing Fed rate cut expectations in
stride

(Adds details and quotes, updates prices)
By Shinichi Saoshiro
TOKYO, June 13 (Reuters) - The yen gained broadly on
Thursday as risk appetite ebbed in the broader markets and
lifted the safe-haven Japanese currency, while the dollar held
the bulk of its gains against other major currencies after
rebounding from 11-week lows.
Equities in Asia slipped as risk sentiment deteriorated amid
uncertainty towards the United States and China clinching a deal
on the sidelines of the June 28-29 Group of 20 summit meeting in
Japan. MKTS/GLOB
The mood in the region's stock markets was also subdued as
Hong Kong shares plunged for second day following massive street
protests.
The yen rose 0.2% to 108.270 yen per dollar JPY= , pulling
back from an 11-day low of 108.800 brushed at the week's start.
The yen, which tends to attract bids in times of market
turmoil and political tensions, rallied 0.5% against the
Australian dollar AUDJPY= and advanced 0.15% versus the euro
EURJPY= .
"The risk aversion and falling stock markets are supporting
the yen as usual," said Bart Wakabayashi, Tokyo branch manager
for State Street Bank and Trust.
"The Australian dollar's underperformance is also a booster
for the yen. Today's Australian jobs data did not appear
particularly poor, but apparently some in the market saw the
data as another opportunity to sell the Australian dollar."
Australia's unemployment rate stayed stuck at 5.2% in May as
a surge in part-time hiring was met by an ever-expanding pool of
labour, a sure sign of spare capacity that argued for another
cut in interest rates perhaps as soon as next month.
The Australian dollar AUD=D4 which fell the previous day
on sliding crude oil prices, extended losses and fell to a
two-week trough of $0.6905.
Despite mounting expectations that the Federal Reserve will
ease monetary policy in coming months, the dollar fared better
against other major currencies, such as the euro, pound and
commodity currencies, which had troubles of their own.
The dollar index .DXY versus a basket of six major
currencies was little changed at 96.919 after rising more than
0.3% overnight.
The index had dropped to 96.459 on Monday, its lowest since
late March, following a sharp decline in long-term U.S. Treasury
yields, which fell to near two-year lows last week after a soft
U.S. jobs report bolstered expectations for an interest rate cut
by the Fed.
The euro took a hit after U.S. President Donald Trump said
on Wednesday he was considering sanctions over Russia's Nord
Stream 2 natural gas pipeline project and warned Germany against
being dependent on Russia for energy. Sterling slipped as British lawmakers on Wednesday defeated
an attempt led by the opposition Labour Party to try to block a
no-deal Brexit. "Thanks to the poor performance of European currencies, the
dollar has managed to rise although the latest inflation data
enhanced Fed rate cut expectations," said Takuya Kanda, general
manager at Gaitame.Com Research Institute.
"The market now considers monetary easing by the Fed as a
foregone conclusion. At the end of the day, the dollar will
still remain a relatively high yielding currency even after a
rate cut or two."
Data released on Wednesday showed U.S. consumer prices
barely rose in May, pointing to moderate inflation that together
with a slowing economy increased pressure on the Fed to lower
interest rates this year. The euro was a shade higher at $1.1294 EUR= after
retreating 0.35% overnight, while the pound stood little changed
at $1.2692 GBP=D4 following a loss of 0.3% on Wednesday.
The dollar was also buoyed as commodity-linked currencies
were pressured by a slump in crude oil prices.
The Canadian dollar CAD=D4 was little changed at C$1.3337
per dollar after shedding roughly 0.5% the previous day.
Oil prices tumbled 4% on Wednesday to their lowest
settlements in nearly five months, weakened by another
unexpected rise in U.S. crude stockpiles and by a dimming
outlook for global oil demand. O/R

(Editing by Simon Cameron-Moore)