* Dollar rises as ISM manufacturing index below forecast
* EU's Almunia comments weigh on euro
* U.S. jobless claims increase, personal spending rises
* Investors wary ahead of Friday nonfarm payrolls report (Updates prices, adds comments, changes byline)
By Wanfeng Zhou
NEW YORK, Oct 1 (Reuters) - The dollar rose against the euro and a basket of currencies on Thursday as disappointing jobs and manufacturing data fueled worries about a global economy recovery and boosted the greenback's safe-haven appeal.
The euro came under particular pressure after a top European official said the region's finance ministers would discuss the single currency's recent appreciation before a Group of Seven meeting this weekend.
Wall Street shares tumbled after data showed more people than expected filed initial claims for jobless benefits last week, while the manufacturing sector grew less than expected in September.
The U.S. data followed the release of disappointing numbers on euro zone unemployment and UK manufacturing activity.
"The main driver is a slow increase in risk aversion at a time when ... data around the world are showing a slight slowdown in the pace of manufacturing" recovery, said Andrew Wilkinson, senior market analyst at Interactive Brokers in Greenwich, Connecticut.
"I think that's unnerving some people going into the final quarter. The big question is whether the various government stimuli will continue to bolster manufacturing around the world," he added.
In afternoon trading in New York, the euro fell 0.6 percent to $1.4542 and 0.7 percent to 130.42 yen.
Traders also focused on remarks made by the European Union's Economic and Monetary Affairs Commissioner Joaquin Almunia saying euro strength would be discussed when Group of Seven officials meet in Istanbul this weekend.
"Comments from an EU official about the euro's strength, which would be discussed at the G7 meeting, have had a nasty impact on the euro against the dollar," said David Watt, senior currency strategist at RBC Capital Markets in Toronto.
European Central Bank President Jean-Claude Trichet supported that view, saying excess foreign-exchange moves had an adverse impact. On Monday, he backed the argument for a strong U.S. currency.
PAYROLLS LOOM
Finance officials around worldwide have in the past week spoken out on their discomfort with their respective currencies' strength against the dollar, which has tumbled more than 6 percent against a currency basket in the third quarter.
The ICE futures dollar index, which tracks the value of the greenback against a basket of six currencies, rose 0.7 percent to 77.166.
Federal Reserve Chair Ben Bernanke said on Thursday in a House Financial Services Committee the dollar would weaken if it loses its status as the international reserve currency.
Against the yen, the dollar dipped 0.1 percent to 89.70 yen, staying above an eight-month trough of 88.23 yen hit earlier this week on trading platform EBS.
Investors were also wary ahead of Friday's key U.S. nonfarm payrolls report. Data is expected to show the economy shed 180,000 jobs in September, according to a Reuters poll.
The day's economic data did offer some bright spots, including strong U.S. personal spending for September and upbeat housing numbers. But investors were focused on the worse-than-expected manufacturing number from the Institute for Supply Management.
"The (ISM) was pretty close to expectations, but if you're looking at recovery, the number really didn't do the trick," said Ronald Simpson, director of currency research at Action Economics in Tampa, Florida.