* Waning risk appetite helps dollar's safe-haven appeal
* Dollar hits day high vs yen on Japan Fujii's comments
* Dollar has first up week vs yen in six weeks
* Stg dips as Lloyds' news fans financial sector jitters (Recasts, adds comment, updates prices; changes dateline, previous LONDON, changes byline)
By Nick Olivari
NEW YORK, Sept 18 (Reuters) - The dollar rose against most major currencies on Friday, coming off a one-year low against the euro as waning risk appetite cut demand for higher-yielding currencies and other assets.
With no major U.S. data scheduled for release on Friday, foreign exchange investors will likely take their cue from flows into equity and commodity markets.
The dollar has retreated broadly since March as investors shifted into riskier assets due to increasing signs the global economy is recovering, and it extended its losses this week as equities and commodities rallied.
But the U.S. currency gained a respite on Friday as investors trimmed their positions ahead of holidays in Japan and Singapore next week, although the trend for broad dollar weakness was seen as likely to persist.
"It's hard to fight capital flows right now," said Greg Salvaggio, vice president for trading at Tempus Consulting in Washington. "The fundamentals have taken a back seat to capital flows."
In early New York trade, the euro dipped 0.2 percent from late U.S. trading on Thursday to $1.4708. It hit a one-year high on Thursday, and has risen more than 2.5 percent so far this month.
The dollar index, which measures the dollar's value against a basket of six major currencies, rose 0.3 percent to 76.391, having bounced off Thursday's one-year low of 76.010.
"We've obviously had a fairly big move. There's not much in terms of news or catalyst to drive the market further ... It's just time for a period of consolidation after some big moves," said Derek Halpenny, European head of currency research at Bank of Tokyo Mitsubishi UFJ in London.
Comments by Russian Prime Minister Vladimir Putin that there was no threat to the United States from many reserve currencies had little immediate effect.
YEN PULLS BACK, STERLING SLUMPS
Against the yen, the dollar rose as high as 91.63 yen according to Reuters data, after Japanese Finance Minister Hirohisa Fujii said he did not want to be perceived as backing a strong yen.
It was last up 0.2 percent at 91.22 yen, having rebounded from a seven-month low hit on Wednesday.
For the week, the euro rose 0.8 percent against the dollar. The dollar gained 0.9 percent against the yen, the first week of gains in six trading weeks. The dollar index was 0.4 percent lower on the week.
Sterling hit a four-month low against the euro on news the UK had set tougher-than-expected conditions to the potential exit of Lloyd's Bank from a state-run scheme to protect its assets.
Britain's Lloyds Banking Group said on Friday it was weighing alternatives to the scheme to insure it against credit losses.
Sterling also slumped 0.7 percent to $1.6335.
The Australian dollar fell 0.2 percent to $0.8701, down from a 13-month high hit on Thursday. The New Zealand dollar was little changed around $0.7103, off a 13-month high hit on Thursday.
(Additional reporting by Emelia Sithole-Matarise in London) (Editing by Theodore d'Afflisio)