FOREX-Euro slides, dollar, yen gain as stocks struggle

The euro fell on Tuesday while the yen and the dollar rose as a retreat in European shares from a 10-month high the previous day curbed demand for currencies considered to be high-risk.

European shares fell 0.5 percent .FTEU3, pulling away from their highest level since October hit on Monday, and Chinese shares shed 2.6 percent, prompting traders to sell the euro and sterling.

"Today is a risk-off day as equities are coming off and the dollar is trading a bit stronger," said Carl Hammer, currency strategist at SEB in Stockholm.

But he said the broad trend for elevated risk demand remained intact.

By 0749 GMT, the euro EUR= traded 0.2 percent lower at $1.4269, having slipped to the day's low of $1.4254 according to Reuters data, in early European trade.

Traders said Asian names were seen selling the euro against the dollar.

Investors awaited speeches from Swiss National Bank officials later in the day to see if they would reiterate their position to combat excessive strength in the Swiss franc. Swiss authorities have been intervening in the currency market since March.

The dollar index .DXY was little changed but the U.S. currency fell as low as 93.80 yen in early trade, as the yen was the main beneficiary of the pullback in risk demand.

In early European trade, the pair traded at 94.12 yen, down 0.4 percent on the day.

The dollar showed little reaction to news that U.S. President Barack Obama would reappoint Federal Reserve Chairman Ben Bernanke for a second term on Tuesday. [ID:nN24151253]

"I don't think there will be any major impact, but it should be positive for markets such as the stock and bond markets in the sense that an element of uncertainty has been removed," said Takahide Nagasaki, chief FX strategist at Daiwa Securities SMBC in Tokyo. link.....