* Yen holds steady tone before U.S. jobs report
* Dollar flat at 91.17 yen, down from 1-month high
* Focus on fate of U.S. rescue plans for financial system
* German IP, UK PPI, industrial output due out
(Adds quotes, updates prices, changes dateline prvs TOKYO)
By Tamawa Desai
LONDON, Feb 6 (Reuters) - The yen held a steady tone against the dollar and euro on Friday as trade was subdued ahead of key U.S. jobs data which is expected to show another grim sign for the economy.
The U.S. currency had hit its highest in nearly a month against the yen on Thursday, on a rally in U.S. shares that reawakened some investor interest in taking risk.
But analysts said the slight recovery in risk appetite may not be sustained as the health of the global economy remained severe, with forecasts for more than half a million U.S. jobs likely to have been lost in January.
"In recent days, negative U.S. data has been positive for the dollar with bad economic news weighing on equity markets and a 'safe-haven' bid being created for the dollar in turn," said David Powell, currency strategist at Bank of America. "However, the more straightforward reaction in the forex markets from a bad reading is likely to be a yen rally."
A Reuters poll shows the U.S. unemployment rate is likely to have climbed to 7.5 percent in January, compared with 7.2 percent a month earlier, with 525,000 jobs forecast to have been shed.
AT 0834 GMT, The dollar was flat at 91.17 yen after climbing above 92 yen on Thursday. The euro was 116.65 yen.
Some traders are looking beyond the jobs report to the Obama administration's bank rescue plan expected to be unveiled on Monday.
"The market already expects a weak jobs report, so the financial plan on Monday will be the main driver," said Lee Hardman, currency economist at Bank of Tokyo-Mitsubishi UFJ.
The euro was little changed against the dollar at $1.2791 after the European Central Bank kept interest rates unchanged on Thursday but indicated more easing next month, as widely expected.
"Worries about the effects from economies and currencies in eastern and central Europe will also continue to weigh on the euro," said Akira Takeuchi, treasury manager at Chuo Mitsui Trust and Banking.
Russia said on Thursday that it would increase its stakes in state banks in coming months. On Wednesday, rating firm Fitch downgraded Russia's sovereign ratings, while Kazakhstan's central bank decided to devalue its currency.
Kazakhstan's prime minister said on Friday the government would not allow any of its banks to default.
Sterling rose 0.9 percent to $1.4753, continuing its march upward after the Bank of England cut interest rates on Thursday. The euro was down 0.8 percent at 86.68 pence.
Data on Friday include German industrial production and UK producer prices and industrial output. (Additional reporting by Charlotte Cooper in Tokyo; Editing by Andy Bruce)