* Dollar inches up vs euro after CIC comments
* Yen recovers after CIC says JP currency will weaken
* Dollar seen in consolidation mode, bias to downside (Adds comment, updates throughout; previous TOKYO)
By Naomi Tajitsu
LONDON, Jan 12 (Reuters) - The dollar edged up on Tuesday, clinging to gains made after an official from a Chinese sovereign wealth fund said he did not think the U.S. currency would depreciate more.
Comments from China International Corp official Peng Junming that the dollar had hit bottom and that it had limited room to fall further, while the yen would keep falling, had pushed the dollar to the day's high versus the euro and the yen. [ID:nBJB003635]
But the U.S. currency trimmed some gains on lingering concerns last week's U.S. payrolls indicated the economy remains in the doldrums, and that interest rates would not rise until later in the year.
"We're still in a phase of dollar consolidation, but it is possible that the dollar can weaken in the coming weeks," said Marcus Hettinger, global currency strategist at Credit Suisse in Zurich.
"Given the weak payrolls figures, U.S. rate expectations have fallen, which is weighing on the currency."
By 0902 GMT, the dollar index <.DXY> was 0.1 percent higher on the day at 77.105. In Asian trade, it had climbed as high as 77.312.
The comments from China's $300 billion sovereign wealth fund pushed the dollar to the day's high against the yen <JPY=> at 92.43 yen, before pulling back to around 91.90 yen.
The euro <EUR=> slipped 0.2 percent to $1.4490, but hovered within reach of $1.4557 hit on Monday, its strongest since mid-December.
The Australian dollar <AUD=D4> traded half a percent lower at $0.9260, stung by the CIC comments and also a weak reading of Australian housing figures. [ID:nSGE60A0MC]
Earlier in the day it had fallen as low as $0.9235, retreating from a near two-month high of $0.9326 hit on Monday.
With few major events or economic data due in the European trading session, traders awaited a speech by Dallas Federal Reserve President Richard Fisher on the U.S. economy later in the day. (Editing by Chris Pizzey)