Yen gains as stocks struggle, euro on back foot

       The yen rose broadly yesterday, gaining in particular against the euro and sterling as a retreat in European shares from a 10-month high the previous day curbed demand for currencies considered to be high-risk.
       Still, the euro trimmed losses as European shares pulled back from a roughly 0.5% fall in early trade, when it took a cue from a 2.6% fall in Chinese shares.
       Trading was thin as many market participants were away on summer holidays,and analysts said currency movements were largely being dictated by other asset markets, making them vulnerable to a pullback in stocks and commodities.
       Some capital markets still look a bit overpriced relative to the hard economic data, so some of the correction weve seen in the pro-cyclicals is to be expected,said Phyllis Papadavid, currency strategist at Societe Generale in London.
       The euro traded flat on the day at $1.4302, clawing back some losses after slipping to the days low of $1.4254 according to Reuters data, in early European trade.
       The dollar index was little changed but the US currency fell as low as 93.80 yen in early trade, as the yen was the main beneficiary of the pullback in risk demand. By 0958 GMT, the pair traded at 94.28 yen, down 0.2% on the day.
       The Swiss franc was little changed against the euro and the dollar as investors awaited a speech by Swiss National Bank board member Thomas Jordan to see if he reiterates the central banks position on combating excessive strength in the national currency.
       Swiss authorities have been inter vening in the currency market since March.