FOREX-Euro inches higher, commodity-linked currencies steadier
* Euro helped by muted stock markets
* Commodity currencies recover after two-day oil sell-off
* Yuan fixed lower for fourth day running (Updates prices, adds quotes)
By Patrick Graham
LONDON, Dec 9 (Reuters) - The euro rose on Wednesday back towards one-month highs hit after last week's unexpectedly cautious policy moves by the European Central Bank, while a pause in a brutal oil market sell-off let commodity-linked currencies regain a foothold.
Chinese authorities fixed the onshore rate of the yuan lower for the fourth day running, adding to a growing conviction in markets that Beijing will knock several more percentage points off its value next year as part of efforts to prop up slowing growth.
Austrian central bank chief Ewald Nowotny blamed inflated market expectations for the sharp reaction to last week's ECB, giving little insight into whether German voices at the bank held off more aggressive easing of policy.
The ECB's willingness to do more next year is becoming as important for the value of the euro against the dollar as the pace at which the Federal Reserve will raise interest rates after an expected first move next week.
"There's a generally more risk-averse tone this morning and we think that may push the euro towards the mid-1.09s," Western Union currency hedging manager Tobias Davis said. Continued...