FOREX-Risk averse investors sweep yen, Swiss franc higher

* Euro down 0.6 percent at 167.54 yen <EURJPY=>=

* Sliding stock markets highlight risk aversion

* G8 comments on dollar awaited

(Changes byline, adds quotes, updates prices)

By Veronica Brown

LONDON, July 8 (Reuters) - The low-yielding Japanese yen rose against the euro and dollar on Tuesday and the Swiss franc also benefitted broadly as global economic jitters hobbled world stock markets, stoking risk aversion.

Credit worries resurfaced on Monday after a Lehman Brothers report said a pending accounting change could force Fannie Mae (FNM.N: Quote, Profile, Research) and Freddie Mac (FRE.N: Quote, Profile, Research) to raise a combined $75 billion in capital. Please click on [ID:nN07435475].

European equities fell sharply in the wake of a dip in Asian stocks after the report on the two largest U.S. mortgage funders drove Wall Street shares down, leading the MSCI World Equity Index to its lowest level since October 2006 .MIWD000000PUS.