FOREX-Dollar gains as stocks soar, loonie and kiwi in focus
* Dollar, Aussie lifted by global rally in equities
* Loonie, kiwi in focus before Canadian, NZ c.bank meetings
* Markets focus on how dovish the c.banks may sound (Adds details, quotes)
By Shinichi Saoshiro
TOKYO, Sept 9 (Reuters) - The dollar gained against the safe-haven yen on Wednesday, boosted by a surge in global stocks amid a recovery in risk appetite that also drove rallies in commodity currencies such as the Australian and Canadian dollars.
The dollar was up 0.4 percent at 120.29 yen, extending gains from an overnight low of 118.885, with a spike in U.S. debt yields on reduced risk aversion helping the greenback.
The U.S. currency followed a now established pattern of moving with the ebb and flow in risk appetite, which tends to favour the safe-haven yen and to a lesser degree the low-yielding euro when assets such as equities are widely sold.
It was the dollar's turn to advance as European and U.S. stocks surged overnight, and then Japanese and Chinese equities rallied.
"I don't see an end to risk sentiment driving currencies any time soon," said Shusuke Yamada, chief Japan FX strategist at Bank of America Merrill Lynch in Tokyo. "It all goes back to China, where opaqueness remains over its currency market, monetary policy and capital controls. The forex market is most on edge about a further possible devaluation of the yuan." Continued...