* Graphic: sterling year-to-date http://tmsnrt.rs/2egbfVh
By Nigel Stephenson
LONDON, Nov 15 (Reuters) - The dollar pulled back from close to 14-year highs on Tuesday, euro zone government bond yields fell and the price of copper tumbled as traders cashed in gains from a rally fuelled by Donald Trump's victory in the U.S. presidential election.
China's yuan CNY=CFXS , which like other Asian currencies has been under pressure since the election, fell to its weakest level against the dollar in almost eight years before recovering slightly.
European shares rose modestly, led by oil and gas, as crude prices rebounded from Monday's three-month lows. Asian markets, which have fallen 5 percent since Trump's victory, were broadly flat.
Expectations Trump's administration will cut taxes, increase spending and accelerate inflation have lifted assets, including the dollar, bank stocks, and industrial metals, and driven bond yields higher.
But concern the new administration could take a more protectionist stance on trade has hit Asian stocks and currencies.
The dollar, which earlier traded close to its strongest since early 2003 against a basket of currencies, fell 0.6 percent on Tuesday as long-dated U.S. Treasury yields fell.
The 30-year Treasury yield US30YT=RR , which on Monday shot above 3 percent for the first time since January, fell 5 basis points to 2.93 percent.
"The market is getting a little bit cautious," said Commerzbank (DE:CBKG) currency strategist Esther Reichelt in Frankfurt. "There might be some concern that the Fed gets more cautious due to the strong dollar (or) this might just be ... a pause to see how other market participants are reacting to dollar strength."
The euro EUR= surged 0.7 percent to $1.0811 while the yen JPY= gained 0.4 percent to 107.95 per dollar.
Sterling fell 1.3 percent against the euro EURGBP= and last traded at 87 pence to the single currency.
The yuan broke through 6.86 per dollar to its weakest since December 2008 and last traded at 6.85.
Euro zone government bond yields fell during a hiatus in a sell-off that has lasted six weeks. Benchmark German 10-year yields DE10YT=TWEB dropped 4.3 bps to just shy of 0.3 percent.
Italian 10-year yields IT10YT=TWEB , which have risen on worries over a referendum on constitutional reform on which Prime Minister Matteo Renzi has staked his career, fell 10 bps to 1.93 percent after Italy's economy grew more than expected in the third quarter pan-European STOXX 600 share index .STOXX rose 0.2 percent. The oil and gas sector .SXEP added almost 2 percent while the basic resources sector, which includes miners, dropped 2.4 .SXPP percent.
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MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was broadly flat.
Copper CMCU3 fell more than 2 percent to $5,440 a tonne. Oil prices, however, rose after the U.S. Energy Information Administration said U.S. shale oil production was expected to fall in December for the 12th month in 13.
Signs that the Organization of the Oil Exporting Countries could be closer to a deal to cut output also supported prices.
International benchmark Brent crude LCOc1 rose 79 cents a barrel, or 1.8 percent, to $45.22.
"News of Qatar, Algeria and Venezuela leading the push for the OPEC deal were music to the ears for oil traders, boosting crude oil prices," IG Group's market strategist Jingyi Pan said.
"Most notably, key producers - Iran and Iraq - were also reported to be contemplating the proposals, re-igniting hopes of a deal in the OPEC's upcoming meeting."