TOKYO, Feb 8 The yen slipped on Thursday, pulling away from a one-month high against the

TOKYO, Feb 8 (Reuters) The yen slipped on Thursday, pulling away from a one-month high against the dollar on doubts that the Group of Seven nations will issue a statement on weakness in the Japanese currency when they meet later in the week.

A broad short-covering rally in the yen in the last week faltered on dwindling expectations that weakness in the currency, which has been pummeled for its low yield, will be addressed in the official communique of the G7 meeting in Essen, Germany, on Feb. 9-10.

''It's likely that the yen won't make it onto the statement,'' said Takehiko Jimbo, a forex manager at Mitsubishi UFJ Trust and Banking.

Still, he said it remained possible that G7 participants -- in particular European delegations -- would continue to air concerns about how weakness in the currency gives Japanese exporters an unfair advantage over euro zone products.

Other market participants said that comments about Japanese interest rates, which at 0.25 percent are by far the lowest of the major currencies, could trigger movement in the yen, although they added that the possibility of such remarks was low.

The dollar was at 120.75 yen inching up 0.1 percent and recovering from a slide earlier in the week to 119.96 yen, its lowest since early January. The U.S. currency edged back towards a four-year high of 122.20 yen hit last week.

The euro was at 157.29 yen recovering from a three-week low and within range of a record high of 158.62 yen hit last month.

The euro's gains against the yen kept the single currency above the psychologically important $1.30 level against the dollar. It was little changed at $1.3015 YEN SUPPORT? Arguing that the G7 in the end was unlikely to have a big impact on the yen, one trader at a U.S. brokerage said the Japanese currency may be spared from significant losses in the coming months as domestic exporters repatriate funds before the financial year ends in March.

Sporadic covering of yen shorts, which have been hitting record highs in past weeks, could also support the Japanese currency, although big gains were unlikely given that the market remains fixated on the yen's low yield.

''We could see the dollar/yen slide to 119 yen on short covering, but a move like that won't last,'' the trader said.

Investors were also awaiting announcements on interest rates by the Bank of England and the European Central Bank later in the session. Both central banks are expected to keep rates on hold following their respective policy meetings.

Still, some traders said they could not completely rule out the risk that the BoE may raise rates, given its recent track record of surprise hikes and in light of strong consumer spending. Markets were caught off guard when the U.K. central bank raised rates to 5.25 percent last month.

Traders said they would also look out for the ECB's post-meeting statement to see if the central bank keeps its stance of remaining vigilant on inflation risks. The ECB is widely expected to raise rates to 3.75 percent in March.

Investors brushed off comments from Bank of Japan board member Hidehiko Haru, who said in a speech on Thursday that low rates were necessary to ensure sustainable growth and price stability, bolstering the market's view that Japanese rates will not rise substantially any time soon.

Haru will speak to reporters later in the session. Deputy Governor Kazumasa Iwata also delivers a speech on Thursday, which traders will comb for any clues on whether the central bank will raise rates later this month.

REUTERS CS VV1148