(Corrects headline to say franc off record highs, not lows)
* Swiss franc pulls back from record highs in volatile trade
* Sharp falls in equities, commodities keeps safe-havens in demand
* Yen bounces back from intervention lows, more official action likely
By Neal Armstrong
LONDON, Aug 5 (Reuters) - The Swiss franc pulled back from a record high against the euro on Friday as nervous traders cut long positions in thin trade, but mounting fears of an economic quagmire in the United States and Europe were likely to keep safe-haven currencies in demand.
The yen edged higher and bounced away from a three-week low hit the previous day after Japan's massive yen-selling intervention, but concerns that the Japanese could intervene again limited the currency's rebound.
A strongly risk-averse mood has been boosting the franc and the yen as mounting fears over the euro zone debt crisis spreading to Spain and Italy and a global growth slowdown have spooked investors and prompted sharp falls in equity markets and commodities and a flight to safety.
"The Swiss franc sold off this morning as the market is very jumpy and wondering whether intervention may be on the cards," said Jane Foley, senior currency strategist at Rabobank.
"But the Swiss National Bank is caught between a rock and a hard place. It's difficult to see the franc being anything but well bid in the current environment."
The franc rose to a record high against the euro of 1.0710 francs in early Asian trade but retreated to 1.0880 in European dealing on fears of official action to weaken the currency after comments from Swiss National Bank Chairman Phillip Hildebrand.
He was quoted as saying the SNB would not accept a further appreciation in the franc without acting, having already cut interest rates this week in an attempt to stem the currency's strength. Traders, however, reported no sightings of the SNB in currency markets so far.
The dollar rose 0.5 percent against the franc to 0.7688 but remained within touching distance of a record low of 0.7610 hit on Wednesday.
YEN BOUNCES BACK
The yen retraced some of Thursday's heavy losses when massive selling intervention from the Bank of Japan pushed it sharply lower against the dollar , with market players eyeing further official action ahead.
"I think they're certain to face international opposition to any protracted intervention," said Todd Elmer, a currency strategist at Citi in Singapore.
"But if they want to be successful in introducing two-way risk into the market I think we're going to need to see further action," Elmer said.
Japanese Finance Minister Yoshihiko Noda said he was closely watching yen moves on Friday, signalling a readiness to continue selling the currency.
A brief spike in the dollar against the yen from around 78.50 yen to an intraday high near 79.40 yen in Asia initially stirred talk that Japan may have intervened again.
But the dollar later pared its gains and traders played down the talk of possible intervention, with U.S. and European banks cited as dollar buyers during the spike higher.
The dollar dipped 0.5 percent against the yen from late U.S. trade on Thursday to 78.44 yen . The euro was down around 0.5 percent at 111.16 yen having risen above 114 yen the previous day.
Support was at 78.27 yen, a 50 percent retracement of the dollar's rise from its four-month low to Thursday's high.
The dollar had risen as high as around 80.25 yen on Thursday after Japan's intervention, which Japan's Nikkei business daily said totalled a record 4 trillion yen. [ID: nT9E7IB01Q]
Japan's solo yen-selling intervention came in the wake of the dollar's drop to a four-month low of 76.29 yen earlier this week, right near a record low of 76.25 yen struck in March.
A focal point on Friday is U.S. jobs data due at 1230 GMT.
Many market players feel that a weak reading there could fan speculation that the Federal Reserve may signal the need to take additional easing measures after its policy meeting next week after the Swiss, Japanese and the European central banks took easing steps this week.
The euro recovered from a fresh three-week low of $1.4055 as Spanish and Italian government bond yield spreads tightened off their widest levels in volatile trading . The single currency was last up around 0.4 percent at $1.4160.
The European Central Bank surprised many market players on Thursday by broadening its liquidity operations as it revived its bond buying programme in the secondary market by purchasing Portuguese and Irish bonds.
But some market players said those measures, coupled with comments from ECB chief Jean-Claude Trichet that there were high levels of uncertainties, only made investors think that economic conditions in Europe may be deteriorating more quickly than they had anticipated. (Additional reporting by Masayuki Kitano, Editing by Susan Fenton)