The yen and the dollar rose broadly on Thursday as investors reduced exposure to risk on growing scepticism the global economy is on the road to recovery. Weak U.S. retail sales data on Wednesday reminded investors that their recent optimism may have been a little premature and pushed them towards those currencies perceived to be safe. The yen outperformed, hitting an eight-week high against the dollar, while gains for the greenback against most other currencies pushed it higher on a trade-weighted basis. Currencies seen as higher risk, such as the Australian dollar and sterling, also fell broadly as European equities fell 0.2 percent. "Risk aversion is very much back in the market," said Arne Lohmann Rasmussen, head of FX research at Danske Markets in Copenhagen. "There is still a strong correlation between global equities and currencies, and U.S. retail sales surprising on the downside didn't help the mood," he said. He added the perception that the "green shoots" of an economic recovery are starting to wither has encouraged profit-taking in riskier assets. At 1155 GMT, the dollar was steady at 95.45 yen , not far off an eight-week low of 95.12 yen hit earlier in the session. Traders said dollar/yen was testing both the 100-day and 21-week moving averages around 95.09 yen, while also pointing out that around $1 billion in dollar/yen options around 95.00 yen are due to expire during the New York session. The yen also gained on the crosses, with the euro down 0.2 percent at 129.55 yen , having hit a two-week low of 128.89 yen, while the higher-yielding Australian dollar also dropped to a two-week low of 71.12 yen

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