* Yen gains as unease lingers but export data offers hope
* Euro gains on dollar as stocks shake off earlier losses
* Sterling tumbles as UK forecasts surge in borrowing (Updates prices, adds details)
By Steven C. Johnson
NEW YORK, April 22 (Reuters) - The dollar fell against the yen on Wednesday, partly due to signs of a modest recovery in Japanese exports, while the British pound plunged after the government forecast a surge in borrowing this year.
The euro also gained on the dollar, but retreated from a session peak above $1.30 as Wall Street stocks fell in late trade, boosting some safe-haven flows into the greenback.
Nagging worries about the financial system kept investors from taking on too much risk, however, undermining higher-yielding currencies such as the New Zealand dollar and boosting the yen, which typically firms when anxiety rises.
The International Monetary Fund said the world economy was in a deep recession and slashed its global growth forecast, while Morgan Stanley reported a second straight quarterly loss. For more, see [ID:nN21500818]
"Investors are trying to decide which way to jump," said Wells Fargo currency strategist Nick Bennenbroek. "The question is whether to bet on a more sustained recovery in financial markets or position for a renewed risk aversion."
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