* Yen hits 5-mth low vs euro, 4-1/2-mth low vs Aussie
* Dollar falls to 2-1/2-mth lows vs Aussie, kiwi
* Regional stocks add to gains on optimism over US bank plan
* Improved risk appetite boosts higher-yielders
By Satomi Noguchi
TOKYO, March 24 (Reuters) - The yen fell broadly on Tuesday to hit a five-month low against the euro and a 4-1/2-month trough versus the Australian dollar as regional share prices extended gains on optimism about a U.S. bank programme, lifting demand for riskier and higher-yielding currencies.
The dollar also struck 2-1/2-month lows against the Australian and New Zealand dollars as the global stock market rally reduced the safety appeal of the greenback, which tends to gain at times of severe market stress.
"The long-awaited U.S. programme is finally out, and that is significant enough to bring some stability to the market," said Minoru Shioiri, chief manager of forex trading at Mitsubishi UFJ Securities.
"And that means the market is likely to have a bias for a weaker yen," Shioiri said.
The euro rose 0.2 percent from late New York to $1.3665, after choppy trade the previous day below a 2-½ month peak of $1.3739 touched last week.
The euro climbed as high as 134.06 yen on trading platform EBS, the highest since October, before retreating to 133.47 yen, up 1.4 percent on the day.
The dollar rose 0.8 percent to 97.73 yen, recovering further from a one-month low of 93.55 yen hit last week.
The U.S. government offered a raft of incentives for private investors to help rid banks of up to $1 trillion in toxic assets that plunged the world economy into crisis.
That included a $75-100 billion programme from existing financial rescue funds to help thaw the frozen market for mortgage-backed securities.
The toxic asset plan got a vote of confidence from stock market investors, with Tokyo shares extending gains to 2 percent following U.S. stocks' 7 percent surge on Monday, their biggest one-day advance in nearly five months.
The dollar fell back towards a 2-1/2-month low hit against a basket of currencies last week after a surprise announcement by the Federal Reserve that it would buy a large amount of Treasuries.
That raised concern the policy could lead to an oversupply of the world's main reserve currency.
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