* Euro hits day's low vs dollar on EU's Almunia comments
* Almunia: Eurogroup to discuss strong euro ahead of G7 meet
* Analysts see range trade before U.S. jobless claims, ISM
(Adds comment, updates throughout; previous TOKYO)
By Naomi Tajitsu
LONDON, Oct 1 (Reuters) - The euro fell on Thursday, dragged down versus the dollar after a top European Union official said the Eurogroup would discuss the single currency's appreciation before a Group of Seven finance ministers' meet later this week.
The euro fell half a percent on the day against the dollar after the EU's Economic and Monetary Affairs Commissioner Joaquin Almunia said strength in the euro would be a topic of discussion, while adding that he was unsure if 2011 would be the right time to withdraw fiscal stimulus.
A 0.4 percent rise in European shares helped to lift the euro from the day's low as it suggested that European investors had some appetite for risk even as Asian share markets fell earlier in the day.
"The euro is a bit softer after Almunia. On the other hand, although risk appetite is taking a break, we are still in the camp of seeing relatively OK risk appetite, which should boost the euro, so we're expecting range trade today," said Carl Hammer, currency strategist at SEB in Stockholm.
He added that currencies may be hemmed in narrow ranges as markets brace for a raft of economic data and events on Thursday.
These include the EU finance ministers' meeting, employment figures from the euro zone as well as U.S. weekly jobless claims, a U.S. manufacturing poll and testimony from Federal Reserve Chairman Ben Bernanke later in the day.
G7 finance ministers and central bank governors will meet on Saturday on the sidelines of World Bank and International Monetary Fund meetings in Istanbul to discuss recent financial market developments and signs of recovery in the global economy.
Dealers said comments or news related to the dollar from the meeting could be a trigger for investors to cover short positions accumulated recently.
By 0748 GMT, the euro was down 0.3 percent at $1.4600, pulling back from the day's low around $1.4550 hit after Alumnia's comments.
Markets offered limited initial reaction to final readings of purchasing managers' indices from European nations, many of which were flat to slightly stronger than initial readings.
The dollar rose 0.3 percent to 90.00 yen, staying above an eight-month trough of 88.23 yen hit earlier this week on trading platform EBS. Offers from some Japanese exporters limited gains in the dollar, traders said.
DATA, EVENTS AHEAD
Traders brushed off Japan's quarterly tankan report, which showed business morale in the country improved further as the economy picks up from its worst slump in decades, though it was still negative.
The International Monetary Fund on Thursday said the recession will end in the euro zone and in Britain in the second half of 2009 but will not end so early in many of the emerging market economies on its eastern flank.
In a report that upgraded its global economic forecasts, the IMF said low inflation offered "ample room to maintain very low interest rates" and other less conventional steps.
Markets offered limited reaction to the report, as traders awaited the U.S. Institute for Supply Management's manufacturing index for September due at 1400 GMT. Expectations are for a 54.0 reading versus 52.9 in August, the highest since June 2007. (Additional reporting by Tokyo Forex Team, editing by Andy Bruce)