* Dollar rises versus yen, little changed vs euro
* China rules out "sudden" changes in FX reserve policy
* Thursday's U.S. payrolls data awaited (Adds comments, details. Updates prices)
By Vivianne Rodrigues
NEW YORK, June 29 (Reuters) - The dollar rose versus the yen on Monday, as comments from China ruled out sudden changes in its foreign exchange reserve policy and as investors shied away from taking large positions before key U.S. jobs data due later this week.
Chinese officials said at a meeting of central bankers in Basel at the weekend that the policy governing its currency reserves, which comprise mainly U.S. Treasuries, was stable and consistent with no "sudden changes," giving the dollar some respite.
The dollar had come under pressure recently as debate intensified about the use of an alternative global currency to the greenback, with China's central bank renewing its call for a super-sovereign reserve currency last week.
"The news helped to boost the dollar at the start of trade this week ... as traders breathed a sigh of relief regarding the greenback's ongoing status as a reserve currency," said Boris Schlossberg, director of currency research at GFT Forex in New York. "Today's tacit reaffirmation of the dollar standard is a sign of Chinese acknowledgment that for the time being the greenback remains the primary manner for settling global trade accounts."
Analysts said currency movements would remain subdued ahead of U.S. payrolls data and comments by the European Central Bank and Sweden's Riksbank expected later this week after their monetary policy meetings.
"The focus now is on the payrolls data, and given that this is also a shortened week I don't expect to see large position-building on currencies until the report is out," said George Davis, a director for foreign exchange at RBC Capital Markets, in Toronto.
In midday trading in New York, the dollar was up 0.7 percent at 95.87 yen. An index that measures the value of the greenback against a basket of currencies was last up 0.1 percent at 79.995.
U.S. PAYROLLS
The market will pay close attention to U.S. payrolls figures for any signs of improvement in the economy's health. The report is due on Thursday, as U.S. financial markets will be closed on Friday for the Independence Day holiday. According to a Reuters poll, forecasts are for a loss of 363,000 jobs in June.
"Euro/dollar has been stuck trading in a range between 1.3890 and 1.42 for some time now," said Davis at RBC. "We would need real market-moving news to see the pair breaking out of that pattern."
The euro see-sawed on Monday and it was last nearly flat at $1.4052, having touched a day's low of around $1.3984 earlier.
Higher stock markets in Europe and on Wall Street eased demand for the greenback as a safe haven.
The European currency also gained some support earlier after data showed euro zone economic sentiment improved more than expected in June.
A survey by the European Commission showed economic sentiment in 16 countries using the euro rose to 73.3 points in June from 70.2 points in May .
The dollar has suffered broadly in the first half of 2009 as recovering stock prices have stoked demand for risk, chipping away at the U.S. currency's safe-haven appeal, while concerns about the U.S. fiscal position have also weighed.
The dollar has struggled the most against higher risk currencies including sterling and the Australian and New Zealand dollars, which have each gained more than 10 percent this year. (Editing by Leslie Adler)