* Yen weakens towards 108 per dlr on rising risk appetite
* Euro steady before Thursday's crucial ECB meeting
* Yuan briefly jumps on report of trade war mitigation
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
By Tommy Wilkes
LONDON, Sept 11 (Reuters) - The Japanese yen fell on
Wednesday as the rush into safe-haven assets during the summer
continued to unwind on the back of rising risk appetite, while
the euro paused before Thursday's European Central Bank meeting.
The yen had rocketed towards a 2019 high as investors in
August fretted about the prospect of a global recession and
selloff. Forex traders often buy the yen in times of uncertainty
because of Japan's vast current account surplus and because they
believe Japanese investors will bring their money home when
international markets tumble.
But with broader stock markets recovering on hopes of easing
U.S.-China tensions and diminishing risks of a no-deal Brexit
before several key central bank meetings, the yen is now
weakening.
"Yen weakness has been reinforced overnight by speculation
that China will implement further measures to ease the negative
economic impact from the trade war with the U.S.," MUFG analysts
said in a note.
The yen was last down 0.2% at 107.73 yen JPY=EBS , some way
from the 105 levels of late August.
Broader risk appetite fed through into gains for both the
Australian and New Zealand dollars, which were up 0.1% each
AUD=D3 NZD=D3 .
The Chinese yuan CNY= briefly jumped after the editor of
Communist Party newspaper The Global Times tweeted that China
would introduce measures to mitigate the impact of the trade
The offshore yuan later shed those gains and was last down
0.1% at 7.1136 yuan per dollar CNH=EBS .
Elsewhere, investor focus for now is centred on the ECB
meeting on Thursday. Expectations that policymakers will push
interest rates even further into negative territory have weighed
on the euro EUR=EBS , which has shed 3% since June.
The single currency was little changed at $1.1044, with bets
divided on the likely scope and style of any stimulus.
The dollar index .DXY ticked 0.1% higher at 98.414.
"Nobody really wants to commit yet," said Matt Simpson,
senior market analyst at Gain Capital in Singapore.
"We've had the trade-war boost last week, it's filtered
through this week, and so markets are taking a bit of a
breather," he said. "Now it's in that little in-between stage -
what's going to keep to keep that value going?"
The ECB decision is likely to set the tone for upcoming
rate-setting decisions by the U.S. Federal Reserve and the Bank
of Japan next week, and for the broader global risk appetite.
Sterling GBP=D3 edged lower to $1.2349, but was near its
six-week high of $1.2385 hit earlier in the week.