* Dollar/yen drives jump in volumes
* Share of sterling, Australian dollar drop
* CLS data shows average daily value at $5 trillion
By Anirban Nag
LONDON, July 29 (Reuters) - Average daily turnover in UK foreign exchange markets jumped from more than two-year lows to record highs in the six months to April, driven by a surge in dollar/yen trade, a Bank of England survey showed on Monday.
Average daily turnover of spot, outright forwards, non-deliverable forwards, swaps, FX options and currency swaps totalled $2.55 trillion in April, up 26 percent from October 2012 and 19 percent from the same period in 2012, the central bank said in its semi-annual survey of the UK foreign exchange market.
Higher foreign exchange turnover generally means higher market trading revenues for banks and can also point to increased international trade in goods and services.
The Bank of England released the data as part of a global semi-annual survey of FX turnover. London and New York are the world's biggest currency trading centres.
"This is the highest level of turnover recorded since the survey began," the BoE said. "Turnover in the (dollar/yen) pair more than doubled to $503 billion per day, to become the second most traded pair."
In the October survey, when turnover hit its lowest since 2010, sterling/dollar was the second-most actively traded pair after euro/dollar.
Interest in the dollar/yen pair has risen since Japanese Prime Minister Shinzo Abe came to power late last year and pledged to get the economy out of years of deflation.
Subsequently, the Bank of Japan launched a massive bond-buying programme in April as part of its monetary easing programme. This has driven the dollar 13 percent higher against the yen while the euro is up 13.5 percent so far this year.
Spot FX activity jumped 38 percent to $1 trillion a day, up from $730 billion in October. The daily turnover in FX swaps also jumped to $1.1 trillion per day, from $938 billion in October, while FX options trading rose to $185 billion per day.
The results chime with data from FX settlement system CLS Bank and the two major electronic trading systems - EBS, owned by ICAP Plc, and Thomson Reuters.
According to the BoE's survey of 30 financial institutions, trading in the U.S. dollar increased to 86.9 percent from 86 percent in October. The sum of the percentage shares totals 200 percent not 100 percent because two currencies are involved in each transaction.
The euro, the second most actively traded currency, saw its share dip to 36.5 percent from 41.2 percent. Trade in the yen rose to 24.4 percent in April 2013 from 15.1 percent while the pound's share slipped to 15 percent from 16.3 percent in October.
Growth and commodity linked currencies like the Australian , Canadian and the Mexican peso all took a lower share of volumes while that of the New Zealand dollar was steady.
Data from CLS Bank, which was also released on Monday, showed global average traded value was at $5 trillion in April, up 12 percent from October.