Dollar off 14-yr low vs yen; SNB seen intervening

By Tamawa Desai and Jamie McGeever

LONDON (Reuters) - The dollar edged up from 14-year lows against the yen on Thursday as renewed risk aversion prompted investors to shed riskier assets, giving pause to broad dollar selling.

A two percent fall in European stocks <.FTEU3 and a one percent drop in U.S. share futures encouraged traders to trim positions that involved selling dollars for other currencies and assets like commodities.

Market players also refrained from re-testing lows on the dollar as trade thinned for the U.S. Thanksgiving Day holiday.

But dollar-bearish sentiment remained intact on views U.S. interest rates would stay low for some time and on pressure for the dollar to weaken to correct the U.S.' imbalances.

By 1242 GMT the dollar index, a barometer of its performance against six major currencies, rose 0.5 percent on the day at 74.629, up from a 15-month low of 74.170 earlier in the day.

Dubai's shock move on Wednesday to restructure its biggest corporate debtor, Dubai World, and delay repayment on some of the company's $59 billion of liabilities, dented risk appetite across asset markets on Thursday, to the dollar's benefit.

"While much of the moves are going to occur in rates and credit markets, it is also being reflected in stock markets and foreign exchange," said Lauren Rosborough, senior strategist at Westpac in London.

The euro was down a third of percent on the day at $1.5080, after rising more than 1 percent on Wednesday to a 15-month high of $1.5145 on EBS.