LONDON, April 24 Reuters The U.S. dollar regained some ground on Wednesday following big falls against the euro and sterling the day before, while the yen remained mired near 34year lows even as Japanese officials stepped up intervention warnings.

The dollar index which measures the currency against six major peers including the euro, sterling and yen was last up 0.2 at 105.84 after earlier touching the lowest since April 12 at 105.59.

It slumped 0. on Tuesday, driven by surprisingly robust European activity data and cooling U.S. business growth.

The euro was down 0.1 at 1.0688, following Tuesday39;s 0.4 rally after data showed business activity in the euro zone expanded at its fastest pace in nearly a year, primarily due to a recovery in services.

Sterling also benefited from data showing British businesses recorded their fastest growth in activity in nearly a year, while Bank of England Chief Economist Huw Pill said interest rate cuts remained some way off. Sterling was last down 0.1 at 1.2431, having jumped 0.8 in the previous session.

By contrast, U.S. business activity cooled in April to a fourmonth low due to weaker demand, while rates of inflation eased slightly.

We39;d be cautious about jumping into a bearish narrative on the back of soft activity surveys, as hard data has generally helped the dollar of late, said Francesco Pesole, FX strategist at ING.

Friday sees the release of the Fed39;s targetted consumer inflation measure, the PCE deflator….