NEW YORK (AFP) - The dollar tumbled except against the yen Thursday as investors gained new confidence to take risks after the Group of 20 meeting on the global economy and strong US manufacturing data.

Dealers said the gains in the euro were supported by the European Central Bank's decision to cut interest rates by a smaller-than-expected quarter point and take a cautious line on doing any more for the moment to stoke the economy.

At 2100 GMT (5:00am local time), the European single currency was quoted at 1.3461 dollars from 1.3234 dollars late in New York on Wednesday.

The dollar climbed to 99.52 yen from 98.54 yen on Wednesday.

The dollar has benefited in recent months from its safe-haven status as the US and global economy headed ever deeper into recession, strengthening on bad news as investors sought out the asset best-placed to weather the storm.

However, as recent data suggests the worst downturn since the 1930s may finally be bottoming out, investors have become more confident about looking for other investment opportunities.

This was reflected Thursday in massive gains on world stock markets and a weakening of the dollar as funds were moved out of the US unit.

Dealers said that even if there were still concerns about the depth of the downturn, the focus was turning to prospects of a recovery later this year.

The G20 summit turned out positive overall, especially for emerging market currencies which have been under great pressure from the global crisis.

"Despite all the skepticism around the G20 summit, a key accomplishment will be much-reduced risk of an emerging market currency crisis thanks to the increased funding for the IMF (International Monetary Fund) and commitment to support trade finance," Citigroup analysts said in a note.

Derek Halpenny, at Bank of Tokyo-Mitsubishi, said it was encouraging that the sharp twist to the crisis that followed the collapse of US investment bank Lehman Brothers in September appeared to be easing and this would be supportive for the euro.

"Risk appetite appears to be returning," Capital Economics noted.

Jon Gencher at BMO Capital Markets said the yen, which like the dollar is seen as a safe haven in times of market turmoil, was coming under selling pressure.

"The yen, on top of the ongoing economic weakness in Japan, is also coming under some renewed pressure as the risk appetite is seeing a degree of the carry trade being reestablished," he said.

In the carry trade, investors borrow yen at low rates in Japan and invest the funds in higher-yielding currencies, a phenomenon that depresses the Japanese currency.

In late New York trade, the dollar 1.1340 Swiss francs after 1.1461 Wednesday.

The pound was at 1.4725 dollars after 1.4444.