* Dollar up versus most currencies on safety buying
* U.S. $30 bln commitment to AIG adds to concern about banks
* Yen gains against dollar and euro on exporter hedging
By Satomi Noguchi
TOKYO, March 2 (Reuters) - The dollar rose against most other currencies on Monday after sources said the U.S. government would pour a further $30 billion into embattled insurer American International Group, fuelling safety buying of the greenback.
The AIG move follows a new rescue plan for Citigroup, adding to fears that more financial firms may need similar rescue plans, analysts said.
The yen was among the few to climb against the dollar as Japanese exporters continued to sell the greenback to hedge their overseas earnings after seeing the yen rebound sharply on Friday from a weekly slide.
"The market has become increasingly concerned that the need for rescues is broadening to other major U.S. banks after Citigroup and AIG," said Kengo Suzuki, a currency strategist for Shinko Securities.
AIG's board on Sunday approved a new rescue package that includes more lenient terms on an existing government investment in its preferred shares and a lower interest rate on a government credit line, sources familiar with the matter said.
AIG is set to report the biggest loss in corporate history later in the day.
The euro fell 0.4 percent to $1.2572, while it also dropped 1 percent against the yen to 122.10 yen, according to Reuters dealing system.
The dollar was adding to gains made late last week against the euro after the U.S. government said it would raise its equity stake in Citigroup to as much as 36 percent and economic data showing the U.S. economy had its deepest contraction since 1982.
The dollar fell 0.7 percent to 97.05 yen, after tumbling from a 3-1/2-month high of 98.72 yen hit last week. (Editing by Hugh Lawson)