By Naomi Tajitsu LONDON (Reuters) - The yen jumped against the dollar on Wednesday, closing in on a seven-month high against the U.S. currency after Japan's incoming finance minister said a strong yen had advantages for the nation's economy. An increase in risk demand due to higher global share prices and a surge in gold prices continued to pummel the dollar, which hit a one-year low against a currency basket and a nine-month trough versus the euro. The dollar fell half a yen to the day's low of 90.48 yen after incoming Finance Minister Hirohisa Fujii also said he was opposed to currency intervention if movements were gradual, while adding that current moves were not rapid. "The comments suggest the new government is not as keen to interfere in the market as the old one was," said Johan Javeus, chief currency strategist at SEB in Stockholm. "It seems this has given a go ahead signal to the market that it's OK for the yen to strengthen." Still, he added Fujii's comments that he opposed currency intervention if movements were not rapid suggested the new government, like the old one, remained concerned with the speed of yen appreciation. Analysts have said traders remain cautious about pushing the yen too high due to lingering concerns Japan may act to stem the yen's strength, as they did in a massive intervention campaign in 2003-2004. Such concerns may limit the yen's gains beyond around 87 yen, a level hit earlier this year for the first time since 1995. By 0745 GMT (3:45 a.m. EDT), the dollar had fallen roughly 0.8 percent to around 90.30 yen according to electronic trading platform EBS. Traders in Tokyo said dollar/yen selling accelerated on selling by speculative players following Fujii's remarks. The euro extended gains, rising as high as $1.4709 in European trade to hit its strongest level since December 2008. Against a currency basket, the U.S. currency fell as low as 76.262, its weakest level in a year. RISK RALLIES A 0.6 percent rise in European shares .FTEU3, which took a cue from a rally in many Asian share markets to their highest levels of the year after upbeat U.S. economic news boosted the appeal of riskier assets leveraged to global growth and stung the dollar. Gold prices climbed as high as $1,017.75, their highest since March 2008.

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