NEW YORK, Dec 19 Reuters The dollar edged down against the euro as upbeat German business morale data supported the common currency, while a modest improvement in investors39; appetite for riskier currencies weighed on the safehaven dollar.

German business morale rose more than expected in December as the outlook for Europe39;s largest economy improved despite the energy crisis and high inflation, a survey showed on Monday.

The euro rose 0.2 to 1.06085 , not far from the sixmonth high of 1.0737 touched last week.

I think the dollar is generally softer on slightly higher riskon trading, said John Doyle, vice president of dealing and trading at Monex USA.

The U.S. currency, which rallied for much of this year on a hawkish Federal Reserve and rising geopolitical tensions, has come under pressure in recent weeks as investors bet the central bank may have limited room to keep on with its inflationfighting interest rate hikes.

Last week, Chair Jerome Powell said the Fed will deliver more interest rate increases next year despite a possible U.S. recession, with rates expected to peak above 5.

European Central Bank vicepresident Luis de Guindos said on Monday it would keep raising euro zone rates to curb inflation and was not considering revising its own midterm inflation goal of 2.

The Australian dollar , viewed as a liquid proxy for risk appetite, was 0.19 higher after President Xi Jinping and his senior officials pledged to shore up China39;s battered economy next…