* Dollar falls as risk aversion eases somewhat
* Dollar index down 0.3 percent; dollar up 0.3 percent vs yen
* Yen trading light; markets wary of U.S. Q1 GDP, Fed
* ECB's Stark, Juergen to speak
(Adds quotes, updates prices, changes dateline prvs SYDNEY)
By Tamawa Desai
LONDON, April 29 (Reuters) - The dollar was down against other major currencies apart from the yen on Wednesday as risk aversion eased somewhat, after stronger-than-expected U.S. economic data offset concerns about the banking sector and swine flu.
But sentiment remained wary ahead of the release of first quarter growth figures in the United States, as well as a policy decision by the U.S. Federal Reserve later in the day.
"For now, better risk conditions are acting as a drag on the dollar," said Tom Levinson, currency strategist at ING. "Much uncertainty surrounds today's Q1 GDP figure."
"In all, while the dollar is under some pressure we would be cautious over further near-term losses, with both swine flu issues and Monday's bank stress test results offering concern," he added.
The dollar was lower against a basket of currencies, down 0.3 percent at 84.866.
At 0740 GMT, the euro was up 0.3 percent at $1.3195.
Sentiment improved after stronger-than-expected U.S. economic data on consumer confidence and home prices, as well as positive corporate earnings results, which supported tentative hopes the economy may be stabilising.
Speculators also covered short positions taken out at the start of the week when concerns about the swine flu outbreak escalated.
"The market is not ignoring swine flu but putting it in a bit more perspective and looking to put risk trades back on, so there's been buying in euro/yen," said Gerrard Katz, head of currency trading at Standard Chartered in Hong Kong.
Euro zone data on Wednesday include sentiment indicators. European Central Bank Executive Board members Axel Weber and Juergen Stark are also scheduled to speak, at separate events.
Yen trading was relatively light as Tokyo markets were closed for a public holiday, and as many market participants are expected to be away for the duration of the "Golden Week" holiday period which runs through next Wednesday.
The euro was up 0.6 percent against the yen at 127.54 yen. It had risen to 127.83 yen.
Higher-yielding currencies were also up. The Aussie jumped more than 1.5 percent on the day to as high as 69.27 yen from a one-month low.
Risk appetite took a beating on Tuesday after the Wall Street Journal reported regulators had told Citigroup Inc and Bank of America they may need to raise more capital based on early results of the government's stress tests on banks.. Results are due out next week.
Markets await first-quarter U.S. gross domestic product figures to be released at 1230 GMT. Economists forecast an annualised contraction of 4.9 percent, but estimates range as deep as an 8.0 percent drop.
The Fed ends a two-day meeting on Wednesday and as rates are already near zero, markets will be looking for any extension of quantitative easing and will focus on the central bank's economic outlook amid signs that a downturn is easing. A statement is due out around 1815 GMT. (Additional reporting by Anirban Nag in Sydney; editing by Stephen Nisbet)