* Aussie falls after oil extends drop
* No surprises from G8 finance ministers' meeting - traders
* Euro dips after report saying German credit crunch deepens
* Some focus on first BRIC summit on Tuesday
By Satomi Noguchi
TOKYO, June 15 (Reuters) - The dollar rose broadly on Monday
as investors took profits on other major currencies which had
climbed to multi-month highs on hopes for a recovery in the
global economy.
Some traders said a cautious tone from policy makers who
gathered at a Group of Eight finance ministers meeting on the
weekend helped temper recent optimism about the economy,
encouraging bets in riskier assets to be cut further.
Commodity-linked currencies such as the Australian dollar
were under additional pressure after oil prices fell in Asian
trade, extending their slide from more than seven-month highs
above $73 struck last week.
"The market began taking profits on gains in emerging market
currencies as well as higher-yielding currencies before the G8
meeting, and this is continuing as many investors still have
their doubts about the recent excessive optimism over an economic
recovery," said a senior trader at a Japanese bank.
The G8 nations, heartened by signs the credit crisis is
easing, have started to consider how to unwind rescue steps for
their economies, their finance ministers said on Saturday.
[]
But they also warned there must be firmer signs of recovery
before any of the massive public stimulus for the economy is
withdrawn.
"The G8, as expected, did not lay out the details of the exit
strategies for their crisis policies," said Kosuke Hanao, head of
treasury product sales at HSBC in Tokyo.
The dollar index, a gauge of the greenback's performance
against six other major currencies, rose 0.4 percent to 80.505
<.DXY>.
The euro dropped 0.5 percent from late New York trade to
$1.3942 <EUR=>, extending a fall made after data on Friday showed
a plunge in euro zone industrial production in April.
Traders said the euro came under selling pressure after the
UK Daily Telegraph reported on its website that Germany's top
industrial group has warned that Germany's credit crunch is
deepening.
The euro dropped 0.5 percent to 137.17 yen <EURJPY=R>,
dragging the dollar lower against the yen, traders said.
The dollar trimmed earlier losses and traded at 98.38 yen
<JPY=>, down 0.1 percent on the day.
The Australian dollar fell 0.8 percent to $0.8072 <AUD=D4>,
retreating further from an eight-month high of $0.8265 struck
earlier this month.
U.S. crude oil futures fell 1 percent to $71.27 a barrel
<CLc1> in Asian trade on Monday, extending falls on Friday which
snapped a three-day rally that had pushed futures to their
highest intraday price since late October.
BRIC SUMMIT LOOMS
The dollar drew some support from comments from Russian
Finance Minister Alexei Kudrin, who said the dollar's role as the
world's main reserve currency is unlikely to change in the near
future. []
Kudrin's remarks came ahead of the first summit of leaders of
Russia, China, India and Brazil on Tuesday in the Russian city of
Yekaterinburg, at which the leaders are expected to discuss
issues including foreign reserve diversification.
Russia holds about 30 percent of its $404.2 billion foreign
exchange reserves in Treasuries, making it the fifth-largest
holder of U.S. government debt. China, the world's largest holder
of U.S. Treasuries, has $707.9 billion, according to the most
recent U.S. Treasury Department data, while Japan has $686.7
billion.
Repeated moves among the so-called BRIC nations to buy bonds
issued by the International Monetary Fund have raised concerns
over the U.S. dollar's status as the world's main reserve
currency.
But leaders of the BRIC countries do not plan to discuss
prospects for new global reserve currencies at their meeting, a
top Kremlin aide said.[]
(Additional reporting by Kaori Kaneko; Editing by Joseph
Radford)
