* Euro rises, higher-risk currencies rally
* Yen suffers, JP FinMin Kan seen taking over as PM
(Reledes, updates throughout; previous TOKYO)
By Naomi Tajitsu
LONDON, June 3 (Reuters) - The dollar fell across the board on Thursday as a rise in global share markets on the back of strong U.S. economic data helped to cool extreme risk aversion.
Speculation for a strong reading of U.S. jobs data due on Friday also prompted demand for riskier currencies, pushing the Australian and New Zealand dollars higher and supporting even the euro, which has been plagued by euro zone debt problems.
"Equity markets are looking better today," said Marcus Hettinger, global currency strategist at Credit Suisse in Zurich. "At least for today, we're seeing some stabilisation in risk appetite."
Stock markets around the world have been stabilising after deep losses suffered last month on concerns that Greece's debt woes may spread to other euro zone nations.
European shares rose roughly 2 percent in early trade, pulling further away from a nine-month low hit last week.
Investors took heart in U.S. data released on Wednesday, which showed surprisingly strong pending home sales for April and a jump in May auto sales.
Expectations that U.S. payrolls on Friday will show that 513,000 jobs were created in May were also helping to whet the market's appetite for riskier assets.
U.S. President Barack Obama on Wednesday said he believed the jobs report would show strong growth.
By 0744 GMT, the euro traded 0.3 percent higher on the day at $1.2285, having climbed as high as $1.2326 at the start of European trade.
The single currency has found its footing after sliding as low as $1.2110 on Tuesday, its weakest in more than four years.
A trimming of some extreme short positions in the euro has helped to stabilise the currency, but some analysts warn its downtrend remains intact, and that it would remains vulnerable to any signs that more euro zone nations are struggling from deficit and banking problems.
YEN SUFFERS
Euro/dollar implied volatility was at around 15.5 percent, retreating from a 14-month high of 19 percent hit in late May, when escalating risk aversion prompted volatile trade.
But even as markets have calmed since then, overall euro sentiment remains bearish.
One-month 25 delta risk reversals, a barometer for short-term fear among speculators and hedge funds, remain well bid for more euro downside, trading at 2.85 on Thursday. Still, gains in the euro and other currencies, including the Australian dollar which rallied 1 percent versus its U.S. counterpart, pushed the U.S. dollar index down 0.3 percent to 86.555.
Despite its broad losses, the dollar edged up 0.3 percent to 92.45 yen.
The Japanese currency suffered against its major rivals as improving risk demand decreased its perceived safe-haven appeal.
Traders also took speculation that Japan's next prime minister would take a tougher stance in fighting the yen's strength as an opportunity to trim long positions in the yen, market participants said.
Finance Minister Naoto Kan is tipped to succeed unpopular Prime Minister Yukio Hatoyama who said on Wednesday he was resigning.
Kan surprised markets earlier this year by saying he wanted the yen to weaken more and that most businesses favoured a dollar/yen rate around 95 yen. But since then he has mostly toed the ministry line that stable currencies are desirable and markets should set foreign exchange levels. (Additional reporting by Tokyo Forex Team, Editing by Toby Chopra)