* Dollar/yen hits 1-week low
* Euro-yen hits 4-month low
* RBA views don't point to rate hikes soon - Aussie, Kiwi
* Graphic: World FX rates in 2017 tmsnrt.rs/2egbfVh
By Ritvik Carvalho
LONDON, April 4 The yen gained on Tuesday as a
risk-averse investors flocked to the safe-haven currency, while
Australia's dollar sank to a three-week low after its central
bank raised concerns about domestic labour conditions.
Investor appetite for risk has been dulled this week by
factors including nerves ahead of an upcoming meeting between
U.S. President Donald Trump and Chinese President Xi Jinping and
a suspected suicide bombing in St. Petersburg, Russia.
The dollar extended Monday's losses and was down 0.4 percent
at 110.46 yen after hitting 110.335, its lowest in a week
in Asian trading. The euro fell 0.6 percent to a four-month low
of 117.585 yen, and the Australian dollar
fell 0.7 percent against the yen.
"(The yen buying) is based on broad-based risk-off since
yesterday. There was a tragedy in Russia and there may be some
hedging-type buying ahead of the French presidential debate and
also French elections in three weeks," said Yujiro Gato,
currency analyst with Nomura in London.
"Clearly risk sentiment is not good at the moment."
Monday's largely positive U.S. construction spending and
manufacturing data affirmed a steady improvement in the economy,
but did little to uphold Treasury yields and the dollar.
The euro was 0.2 percent lower at $1.0652, with an
earlier overnight advance tempered by a sharp decline in German
bond yields driven by flight-to-safety following the bombing in
The Reserve Bank of Australia's decision to keep its cash
rate at a record low of 1.5 percent on Tuesday came as little
surprise. But the Aussie fell after the central bank hinted it
was not too confident about domestic labour and inflation
The Australian dollar lost nearly 0.6 percent to reach a
three-week low of $0.7562, having declined steadily
over the past two weeks from a four-month high of $0.7750.
The New Zealand dollar sank to a three-week low, moving in
tandem with the Aussie and down 0.5 percent on the day.
"The FX market got the message that the RBA does not want to
abandon its neutral approach any time soon and is trading
Australian dollar slightly weaker following the interest rate
decision," Commerzbank analysts wrote in a note to clients.
For Reuters Live Markets blog on European and UK stock
markets see reuters://realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageId=livemarkets
(Reporting by Ritvik Carvalho; Additional reporting by Tokyo
Markets Team; Editing by Tom Heneghan)