* Dollar buoyed by Japan investors' year-end demand
* Support for dollar from risk aversion after Wall St drop
* Euro seen pressured by risk aversion ahead of ECB
By Shinichi Saoshiro
TOKYO, March 31 (Reuters) - The dollar advanced against the yen on Tuesday, buoyed by Japanese investors' demand for dollars on the last day of Japan's business year.
The greenback was also supported as a safe haven amid renewed risk aversion that has battered other currencies such as the euro.
The dollar and yen have seen their safe haven status renewed as fears of bankruptcy for U.S. automakers General Motors and Chrylser sparked a sharp drop in global stock markets the previous day.
But on Tuesday the dollar gained a slight advantage against the yen as the end of Japan's financial year generated book-keeping demand for dollars.
"The dollar is being buoyed as Japanese investors try to secure the currency on the last day of the fiscal year. Investors' demand for the yen stemming from repatriation flows, on the other hand, appears to have peaked," said a trader at a Japanese bank.
"The sharp slide in U.S. stocks the previous day continues to support the dollar as well," the trader said.
Wall Street plunged on Monday on anxiety over the potential bankruptcy of U.S. automakers and renewed financial system concerns, with Spain forced into its first bank rescue since the financial crisis began.
Such concerns have hit the euro hard. It touched a two-month high above $1.37 in mid-March on itting 126.43 yen on trading platform EBS the previous day.
The Australian dollar climbed 0.2 percent to $0.6823 after hitting a near two-week low of $0.6770 the previous day on renewed risk aversion. (Editing by Michael Watson)