Dollar and euro drift, yen slips as markets seek direction

By Gregor Stuart Hunter SINGAPORE, Oct 20 (Reuters) – The US dollar churned at the start of trading in Asia on Tuesday as a tepid recovery in investor confidence bolstered higher-yielding currencies, but growing political risk in Europe continued to test traders’ nerves. The euro was steady at $1.1216, while the British pound rose 0.1% to $1.3308. The Australian dollar was up 0.1% at $0.6986, while its New Zealand counterpart nudged 0.1% higher to $0.5668. Against the yen, the US dollar was flat at 158.56 yen ahead of an auction of 20-year Japanese government bonds. “FX markets reflected the improvement…