Dollar rises vs euro

* Dollar rises vs euro, basket of currencies, near 2-yr highs

* Emerging markets, economy worries underpin dollar demand

* Yen hits 6-year high vs euro on risk aversion, repatriation

* Nikkei down over 5 percent on earnings worry, yen cross hit

By Chikako Mogi

TOKYO, Oct 24 (Reuters) - The dollar rose against the euro and a basket of currencies on Friday, holding near two-year highs as worries about global economies and emerging markets prompted investors to keep reducing risk assets and repatriate funds.

Emerging market currencies have been hit hard by the global credit crisis in recent weeks, intensifying risk aversion and prompting investors to repatriate their overseas investments.

Deepening financial turmoil has boosted the allure of the dollar, the world's most liquid currency.

The dollar's broad strength has added fuel to sharp falls in other yen crosses as investors unwind high-yielding currencies favoured for carry trades, using the low-yielding yen to buy high-yielding currencies, traders said.