* Dollar slips amid US fiscal, bank package uncertainty
* Focus on US financial stability plan to be outlined Tues
* Pound hits 3-wk high vs dlr as Barclays results cheered
* Dollar index down a third of a percent at 85 <.DXY>
(Recasts, adds quotes, updates prices)
By Kirsten Donovan
LONDON, Feb 9 (Reuters) - The dollar slipped against major currencies on Monday, with sentiment dented by growing uncertainty over the timing and details of U.S. plans for a massive fiscal stimulus and anticipated bank bailout package.
U.S. President Obama's administration on Sunday pushed back the announcement of the bank rescue plan until Tuesday as it pressed lawmakers to settle their differences over the economic stimulus plan.
The announcement had originally been scheduled for Monday but the Senate will be spending Monday focusing on the stimulus package ahead of a vote on Tuesday.
The Japanese yen originally strengthened across the board on Monday, supported by weak equity markets and a move into perceived lower-risk currencies.
But some degree of risk appetite emerged in European
trading: sterling hit a three-week high above $1.49 after
stronger-than-expected earnings from UK bank Barclays Plc
"There's just a little bit of uncertainty about the U.S. stimulus announcement and also any announcements on where the U.S. now goes on the financial sector reforms and bailouts," said RBS strategist Paul Robson.
"But ahead of the U.S. open risk looks to be starting to return with things like the Aussie, Kiwi and sterling performing a bit better."
At 1220 GMT, the dollar was down 0.35 percent against the yen at 91.65, having traded as low as 90.90 yen earlier, and the euro was up 0.2 percent at $1.2959.
Sterling rose 0.7 percent to $1.49, after Barclays earlier booked a bigger-than-expected annual profit of over 6 billion pounds and said credit market losses were waning.
The dollar index was down around a third of a percent at 85.0.
The euro was off 0.1 percent against the yen at 118.87 yen, recovering from an earlier session low of around 117.07 yen.
ALL EYES ON WASHINGTON
With little on the economic calendar for the time being, market focus stayed firmly on the U.S. Congress, which remains sharply divided along party lines on an $800 billion-plus economic plan, as well as the keenly awaited bank bailout plan.
Grim U.S. data on Friday which showed the U.S. economy lost nearly 600,000 jobs last month unusually bolstered riskier assets, including currencies such as the euro and the pound, as investors hoped this would speed the passing of the package.
That took the dollar to a one-month high against the yen, before the delay of the bank rescue plan dealt investors a blow.
The U.S. financial stability plan is due to be outlined by Treasury Secretary Timothy Geithner at 1600 GMT on Tuesday after a Senate vote on the economic stimulus package.
Analysts noted there could be scope for riskier assets to resume their gains once the U.S. fiscal stimulus and bank rescue deals are announced.
"There remains a risk that Obama might not pull through the package or that he might have to make significant changes," Bank of Scotland Treasury Services currency analyst Naeem Wahid said.
Meanwhile, investors continued to be reminded of the grave situation facing the world's economies.
Figures released Monday showed German exports fell sharply in December after a record decline the previous month.
Figures out of Japan showed the country's current account surplus fell 92.1 percent in December from a year earlier, while corporate bankruptcies soared in January. -- Additional reporting by Jessica Mortimer