FOREX-Dollar, yen rise on risk aversion; BoE in focus

* Dollar gains broadly, but slides vs yen on risk aversion

* Euro falls, weak data weighs

* Investors await Bank of England rate decision at 1200 GMT

(Changes byline, adds quotes, updates prices)

By Veronica Brown

LONDON, Jan 8 (Reuters) - The dollar and yen rose broadly on Thursday as falling share prices tempered demand for higher-risk investments, while the euro fell as dismal economic data kept concerns intact about the deteriorating euro zone economy.

Sterling slipped against the dollar ahead of a rate announcement by the Bank of England due at 1200 GMT. The central bank is expected to cut interest rates by 50 basis points or more from 2.0 percent in an attempt to buffer the UK economy from a deep recession.

The dollar built momentum versus higher-yielding currencies as worries about the global economy slapped oil prices down some 12 percent on Wednesday, pushing commodity currencies like the Australian and New Zealand dollars lower.

This helped the U.S. currency recover some losses suffered in the previous session due to a disastrous reading of U.S. employment, but the dollar fell against the yen, which benefited from risk aversion as share prices in Asian and Europe fell.

Figures on Wednesday showed a 693,000 cut in U.S. private jobs in December, hitting home the view the U.S. economy is deteriorating fast with global reverberation.

"This is a risk aversion-type story as the yen is doing well and the dollar is doing ok too," said Geoff Kendrick, senior currency strategist at UBS in London.

"But we may be getting close to a level of expectation where people become slightly too pessimistic. The ADP pushed people in terms of view on payrolls, but i wouldn't be surprised if we saw -300,000 or -400,000 tomorrow," he added.

By 1109 GMT, the dollar .DXY was up 0.3 percent against a currency basket to 82.419. Yen strength pushed the euro down 1.5 percent to 124.32 yen EURJPY=, while the dollar was down 1 percent at 91.60 yen JPY=.

The euro fell 0.4 percent to $1.3578, edging towards a three-week low around $1.33 hit earlier in the week.

Sterling was down 0.3 percent at $1.5069.

Selling in the euro picked up following figures showing an unprecedented 10.6 percent month-on-month fall in German exports in November as global demand for cars and other manufactured products have plummeted due to a global recession [nL88871].