* Yen rises broadly as GM, Chrysler plans rejected
* U.S. auto news sparks risk aversion
* Euro, dollar, higher yielders all fall vs yen
By Satomi Noguchi
TOKYO, March 30 (Reuters) - The yen rose sharply on Monday after a U.S. government task force rejected the turnaround plans of General Motors Corp and Chrysler LLC, sparking investor risk aversion and sending the euro and dollar down 1 percent.
The Obama administration auto task force warned that bankruptcy for both auto companies remained an option.
The news also prompted investors to reduce risky bets for higher-yielding currencies such as the Australian and New Zealand dollars, which had staged a strong rally last week.
The dollar rose against a basket of currencies with Asian shares and U.S. stock futures slumping on Monday as recent investor confidence ebbed and the safe-haven greenback was favoured.
"Optimism in the market about the auto bailout by the Obama administration is now turning sour by bringing back the potential for bankruptcy," a of 1 percent, the market is keen to see how far it might follow other central banks such as the Fed in taking unconventional steps to shore up the economy.
ECB President Jean-Claude Trichet attends a European Parliament committee hearing at 1430 GMT on Monday and the market will be listening for clues on its next steps. (Additional reporting by Yoko Matsudaira and Charlotte Cooper; Editing by Michael Watson)