* Yen slips broadly as Turkey quashes attempted coup
* Investors had sought safe havens after first reports
* Turkish lira leads riskier currencies higher
* New Zealand dollar falls after soft CPI data (New throughout after start of European trade)
By Patrick Graham
LONDON, July 18 (Reuters) - The yen sank back towards three-week lows against the dollar on Monday, as investors unwound a surge of safe-haven trades done on the back of reports of an attempted military coup in Turkey on Friday.
Turkey widened a crackdown on suspected supporters of the failed coup on Sunday, taking the number of people rounded up in the armed forces and judiciary to 6,000, and the government said it was in control of the country and economy. eased concerns over the prospect of another major round of turmoil to add to Europe's economic and political problems, drawing investors back into higher-risk currencies and out of the traditional security of the yen.
"In general in the past few weeks, we've seen a positive risk environment, and obviously that took a blow as events developed on Friday," said Jeremy Stretch, head of currency strategy at CIBC in London.
"The scenario looks a bit calmer now ... so we're back to thinking about the sort of policy outlook that had the yen falling against the dollar last week."
The dollar gained almost 1 percent on the day to 105.80 yen in early European trade, having reached as high as 106 yen in Asian time.
A handful of media reports last week stirred speculation that the latest leg of Prime Minister Shinzo Abe's efforts to get the Japanese economy going again will see the Bank of Japan fund a rise in government spending as "helicopter money" directly targeted at consumers and businesses.
While analysts are sceptical that Japanese authorities would resort to such measures, the chatter about more aggressive stimulus has put added focus on whether the BOJ will unveil more monetary easing at its policy meeting in late July.
That should weaken the yen and plays in to a broader world environment where central banks are again thinking more about stimulus than finally putting an end to the era of ultra-low interest rates and money-printing.
There is also some chance of the European Central Bank reducing at least one of its main interest rates on Thursday priced into short-term market interest rates, although CIBC's Stretch said there was little of such speculation on the euro.
The single currency, tied down in a tight $1.10-$1.12 range since Britain voted to leave the European Union last month, gained around a quarter of a percent to $1.1054. It rose 1.2 percent to 117.01 yen. EURJPY=
Satoshi Okagawa, senior global markets analyst for Sumitomo Mitsui Banking Corporation in Singapore, said the dollar would probably take a breather in the near term, after its sharp rally against the yen last week.
"I don't expect the dollar to fall below 100 yen, but it will probably have a hard time rising above 107 yen," he said.
The yen had slid more than 4 percent against the dollar last week for its worst weekly performance since late 2009.
The New Zealand dollar also fell after consumer prices there rose less than expected in the second quarter, spurring speculation of an interest rate cut in August. The kiwi set a 2-week low of $0.7068 and was last trading at $0.7106 NZD=D3 , down 0.2 percent on the day. (Editing by Andrew Heavens)