* Dollar falls vs yen after rally on Thursday
* U.S. jobs report eyed, bleak figures expected
* Focus on fate of U.S. rescue plans for financial system
By Charlotte Cooper
TOKYO, Feb 6 (Reuters) - The dollar fell against the yen on
Friday, after surging higher the previous day, with the market
cautious before key jobs data that was expected to paint another
grim picture of the U.S. labour market.
The U.S. currency hit its highest in nearly a month against
the yen on Thursday, on a rally in U.S. shares that thawed some
investor aversion to risk.
But analysts warned the slight recovery in risk appetite may
not be sustained as the health of the global economy remained
severe, with forecasts for more than half a million U.S. jobs
likely to have been lost in January.
"We're likely to be treading water in the major currencies
ahead of the payrolls numbers," said David Mann, senior currency
strategist at Standard Chartered in Hong Kong.
A Reuters poll shows the U.S. unemployment rate is likely to
have climbed to 7.5 percent in January, compared with 7.2 percent
a month earlier, with 525,000 jobs forecast to have been shed.
[]
Analysts say the market has largely factored in the job
losses, although a rise in the unemployment rate would continue
to bode ill for the outlook for a recovery in consumption and the
housing market.
"The dollar probably won't move sharply unless the jobs
report shows a significant deterioration, as investors are
bracing for details on the U.S. bank rescue plan next week," said
Akira Takeuchi, treasury manager at Chuo Mitsui Trust and
Banking.
The dollar slipped 0.4 percent to 90.84 yen <JPY=> from late
U.S. trade on Thursday, when it climbed above 92 yen.
U.S. MEASURES IN FOCUS
The dollar rose on Thursday as U.S. shares climbed on hopes
that Washington's rescue plan for banks might include suspension
of a key fair value accounting rule blamed for billions of
dollars in bank losses.
A source familiar with the government's thinking later said
the Treasury department and the U.S. Securities and Exchange
Commission were not discussing suspending the rule.
[]
Traders said even if it were suspended, this would not solve
all the problems in the financial system and risk aversion was
likely to remain.
The Obama administration is expected to outline its bank
rescue plan next week, while the Senate was due to resume its
debate on Friday about a $900 billion economic stimulus package.
The euro weakened slightly against the dollar as Thursday's
decision by the European Central Bank to keep interest rates
unchanged continued to weigh. The euro fell 0.2 percent to
$1.2765 <EUR=> and 0.6 percent to 115.90 yen <EURJPY=>.
"Worries about the effects from economies and currencies in
eastern and central Europe will also continue to weigh on the
euro," Takeuchi said.
Russia said on Thursday that it would increase its stakes in
state banks in coming months []. On Wednesday, rating
firm Fitch downgraded Russia's sovereign ratings, while
Kazakhstan's central bank decided to devalue its currency.
Kazakhstan's prime minister said on Friday the government
would not allow any of its banks to default.
Sterling held steady at $1.4603 <GBP=D4> after rising on
Thursday when the Bank of England cut interest rates. But it fell
0.5 percent against the yen to 132.63 yen <GBPJPY=R>.
