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TOKYO, Sep 19 (Reuters) The dollar held near a five-month peak against the yen on Tuesday, buoyed after investors brushed aside calls around the weekend meeting of Group of Seven rich countries for the Japanese currency to appreciate.

The yen slid despite the comments from both European and Japanese officials that the currency should reflect Japan's solid economic recovery.

Some traders were also disappointed that the G7 dropped the annex from the April meeting's statement calling explicitly for Asian currency appreciation.

But the dollar pulled back from seven-week highs against the euro after another array of comments from European Central Bank officials signalling that euro zone interest rates are poised to rise further.

Rates remain the dominant theme in currencies, with investors widely selling low-yielding currencies like the yen and Swiss franc in favour of those offering higher yields in the carry trade.

''Despite chatter suggesting yen weakness from this weekend's G7 summit, the theme of carry trades wins the day,'' said currency strategists at Morgan Stanley in a note to clients.

The demand for yield has driven the New Zealand dollar, which offers the highest rates in the industrialised world, to 6-1/2-month highs versus the dollar and pushed the Swiss franc to 6-1/2-year lows against the euro.

Market players are now looking ahead to the Federal Reserve's policy meeting on Wednesday for clues on the U.S. rate outlook.

The Fed is widely expected to stand pat at 5.25 percent but keep a bias toward lifting them further if inflation stays elevated.

Data on Monday showing a weak $32.9 billion of capital inflows to the United States in July, the lowest in 14 months, and a surprisingly big $218.4 billion U.S. current account deficit in the second quarter did little to dent the dollar.

While highlighting the imbalances in the global economy and the big U.S. reliance on foreign capital to cover its deficits, investors have become less fearful of the imbalances leading to a disorderly dollar decline.

The dollar slipped to 117.85 yen from 117.95 yen marked in late New York trade, not far from the peak of 118.29 yen hit on Monday, the strongest since mid-April.

The euro was little changed near 149.80 yen having surged from a low of 148.06 yen struck in early trade on Monday after the G7.

The single currency was also flat at $1.2705, near the seven-week low of $1.2631 struck last week.

REUTERS PDS BST0740