FOREX-Yen jumps on US bank concerns, flu fears

LONDON, April 28 (Reuters) - The yen jumped to a seven-week high against the euro and a one-month peak against the dollar on Tuesday, on a report that regulators have told Bank of America (BAC.N) and Citigroup (C.N) they may need to raise more capital.

The yen extended gains as the report intensified investors' aversion to risk, already heightened by fears of a flu pandemic hampering any recovery in the global economy.

Higher yielding currencies such as the Australian and New Zealand dollars came under pressure.

The Wall Street Journal said regulators have told Citigroup and Bank of America they may need to raise more capital based on early results of government stress tests on banks.

The results of these tests are set to be unveiled on May 4.

"All this results in a higher risk perception, which is why we are seeing a stronger yen," Commerzbank currency strategist in Frankfurt Lutz Karpowitz said.

At 0755 GMT, the dollar slid 0.8 percent against the yen to 95.87 yen , just shy of an earlier one-month low of 95.63.

The euro lost 0.8 percent against the Japanese currency to 124.81 yen , having hit a seven-week low around 124.38 yen. The yen's gains were helped by steep falls in equities, with European stocks tumbling 2.3 percent .FTEU3.

Against the dollar, the euro was steady at $1.3020 .

The Australian dollar fell 1.2 percent against its U.S. counterpart , while the New Zealand dollar lost 1.6 percent .