NEW YORK, July 23 (Reuters) - The dollar rose against the yen on Thursday, with the Japanese currency falling broadly as risk appetite continued to improve with rising global equities and steady commodity prices.
Data showing an increase in U.S. weekly jobless claims failed to dent the market's optimism, given that the data was skewed by an unusual trend of layoffs in the auto sector. Analysts said next week should provide a more accurate picture of the employment outlook as the typical volatility around the auto plant shutdowns fades.
For the jobless claims story, click on [ID:nN23379536].
"Risk appetite is returning to the markets and the overall tone seemed that markets shouldn't worry," said Matthew Strauss, senior currency strategist, at RBC Capital Markets in Toronto.
"That's why we're seeing the yen getting pressured, while the commodity-based currencies are strengthening against the U.S. dollar. The moves though are fairly muted."
In early New York trading, the euro rose 1.1 percent against the yen to 134.38 yen . The dollar was also up versus the yen, gaining 0.9 percent to 94.45 .
The euro was little changed against the dollar at $1.4195.
The pair traded in a narrow $1.4200-1.4266 range, around where options were seen expiring later in the day. IFR reported that 200 million euros with a $1.4245 strike price would expire at the New York cut, along with 300 million euros at $1.4250.
Currencies perceived as higher risk, such as the Australian and New Zealand dollars, also gained against the dollar.
The Aussie dollar rose 0.2 percent against the greenback to US$0.8168 , while the New Zealand dollar was up 0.1 percent at US$0.6575 .
The market focused on more U.S. corporate earnings due out later in the day to gauge the economic outlook. Most second-quarter results have exceeded forecasts, but there are growing concerns as to whether companies' profits will continue rising later this year, which capped gains in riskier assets.
