* Euro in small rebound after rout, climbs above $1.2700
* G7 fin mins to discuss Greece - U.S. Treasury official
* Pound off low after rout, headway limited as vote unclear
By Wayne Cole and Charlotte Cooper
SYDNEY/TOKYO, May 7 (Reuters) - The pound and the euro nursed
chunky losses on Friday after a global rout sent the dollar and
yen soaring, with Asian share markets falling on a Wall Street
sell-off and sterling hurt by election uncertainty.
The euro scraped back to $1.2700 <EUR=> after hitting its
latest 14-month low of $1.2510 on Thursday and shedding 1.6
percent when a steep plunge in U.S. stocks had regulators
investigating whether erroneous trades had caused the fall.
Its rebound extended after a U.S. Treasury official said
Group of Seven finance ministers would discuss the Greek debt
situation in a call on Friday, although Japan's finance minister
said he did not think they were considering joint FX
intervention. [] []
With investors already running scared from euro zone debt
troubles, Thursday's rout compounded risk aversion, keeping the
dollar index <.DXY> close to a one-year high and the yen strong
after it hit an eight-year peak against the euro the day before.
"I think we'll see a pop from here but I suspect we are not
done," said one trader at a UK bank.
"All those fat finger equity levels are now targets."
The euro pulled up to $1.2710 but has lost about 4.5 percent
on the week and is on course for its worst weekly performance
since October 2008.
It stood at 117.30 yen <EURJPY=R> after dropping as far as
110.49 yen on trading platform EBS on Thursday, when it shed 5
percent on the day and hit its weakest level since December 2001,
according to Reuters data.
It pulled back up to 1.4140 Swiss francs <EURCHF=R> after
hitting a record low of 1.4005 francs the day before.
Political uncertainty in Britain also served to cloud the
situation. []
The opposition Conservatives were forecast to emerge as the
largest party after the closest election in three decades, but
seen falling just short of an outright majority in parliament.
The prospect of the first inconclusive election since 1974
left uncertainty about who would form the next government, with
the sense of chaos heightened by reports that hundreds of voters
had been turned away from crowded polling stations across the
country when voting ended at 2100 GMT.
Many believe political uncertainty could derail any quick
plans to put UK public finances in order and could prompt credit
agencies to downgrade Britain from its AAA status.
Sterling stood at $1.4840 <GBP=>, having collapsed from above
$1.5100 overnight to as far as $1.4712, its lowest in over a
year.
The pound was also smashed in the rout by the safe-haven yen
<GBPJPY=R>, shedding 12 yen at one stage to near 130.00 yen
before bouncing slightly to 137.14.
"On election night in Britain we are seeing European
sovereign debt problems playing a big part in the pound's fall,"
said Joseph Capurso, currency strategist at Commonwealth Bank.
"The Greek contagion is moving to markets in Spain and Italy and
that is definitely worrisome."
The renewed rush to safety supported the dollar and the yen.
The dollar index <=USD><.DXY> was at 84.70, not far from a
one-year high of 85.27.
The dollar could get a boost if U.S. jobs later in the day
show 200,000 jobs were added in April, up from 162,000 in March.
[].
The dollar also pared a chunk of its losses on the yen,
rising above 92.00 yen <JPY=>, after hitting 87.95 on Thursday
when it shed nearly 4 percent.
(Additional reporting Anirban Nag in Sydney and Rika Otsuka in
Tokyo; Editing by Joseph Radford)
