* Dollar, yen up on uncertainty ahead of U.S. bank plan
* Euro hurt on report of Russia debt deal
* Geithner set to unveil bank plan outline at 1600 GMT
* Nakagawa warns on FX, suggests yen can't be singled out
(Changes byline, adds quotes, updates prices)
By Veronica Brown
LONDON, Feb 10 (Reuters) - The dollar rose against a basket of currencies on Tuesday, while the yen also kept a firm tone as investor nerves tightened before the U.S. government outlines a widely anticipated plan to shore up its ailing banking sector.
The euro was undermined on conflicting reports that Russian banks were seeking government help to restructure its foreign corporate debt.
But investors were generally wary of taking large positions ahead of the U.S. plan, aimed at helping banks offload their so-called "toxic assets" and boost capital. U.S. Treasury Secretary Timothy Geithner is expected to unveil the outline of the plan at 1600 GMT.
The Obama administration is also waiting for Congress to work out an $800 billion-plus economic stimulus package, although a major hurdle was cleared in the Senate on Monday.
"The market is waiting to see not only what comes out of the U.S. but the details of what comes out and how its implemented," said Phyllis Papadavid, currency strategist at SG in London.
"Although there might be some respite from yen strength around Tim Geithner's testimony, the near to medium-term outlook is clouded by the logistics of it," she added.
The dollar was up a quarter percent on the day against a basket of major currencies at 85.067 by 1218 GMT.
The U.S unit was also higher against the Australian and New Zealand dollars, up 2.2 percent and 1.2 percent, respectively.
Yen strength pulled the dollar down 0.3 percent to 91.15 yen , while the euro fell 0.6 percent to 118.34 yen.
The yen briefly extended gains after Japan's Finance Minister Shoichi Nakagawa told Reuters Japan would act decisively against excessive forex moves, but suggested singling out the strong yen in a Group of Seven communique would not work while damage from the global economic crisis is spreading.
RUSSIA WOES
Earlier, the euro slipped more than one percent on the day against the dollar and yen after Japan's Nikkei business daily quoted Anatoly Aksakov, president of the Russian Association of Regional Banks, as saying the industry group had submitted a proposal to the Russian government to postpone loan repayments of up to $400 billion in corporate debt owned to foreign banks.
But Russia was quick to play down the report. Aksakov told Reuters the Nikkei report was untrue.
"The Nikkei report soured sentiment toward the euro," said Lee Hardman, currency economist at Bank of Tokyo-Mitsubishi UFJ, adding: "Broad concerns about Russia and emerging European countries will continue to weigh heavily on the euro because of European banks' exposure to those regions."
The euro was down 0.25 percent at $1.2980, after falling to $1.2811, according to Reuters data.
The euro was also pressured after European Central Bank Governing Council member Axel Weber said on Tuesday that concerns about long-term effects of loose monetary policies should not stop central bankers from cutting interest rates aggressively in the current severe downturn.
The ECB last left key interest rates unchanged at 2 percent but is expected to cut rates again next month.
Data also showed weakness in the euro zone economy. Italian industrial output was down 2.3 percent in December from the previous month, or down 14.3 percent year-on-year.
The main focus, however, will be the U.S. financial stabilisation and economic stimulus packages aimed at tackling the recession in the world's biggest economy.
Three sources told Reuters the bank rescue package included a public-private partnership that could buy up to $500 billion worth of distressed assets, with private investors able to buy bad assets through low-cost funding from the Fed or using Federal Deposit Insurance Corp guarantees.
(Editing by Ron Askew)
(veronica.brown@thomsonreuters.com; Tel: +44207 542 6745, Reuters Messaging: veronica.brown.reuters.com@reuters.net))