6:03am EST
* Yen, dollar weaker, high-yielding currencies up
* US jobs data lifts risk demand; Sarkozy comments help euro
* Aussie hits 6-week high vs US dollar, helped by M&A news
(Updates prices, adds quotes)
By Jessica Mortimer
LONDON, March 8 (Reuters) - The yen and the dollar fell against the euro and higher-yielding currencies on Monday as Friday's above-forecast U.S. jobs data and easing concerns over Greek debt lifted investor demand for risk.
The euro gained after supportive comments by key policy makers on euro zone debt issues, with French President Nicolas Sarkozy promising on Sunday that euro zone countries would help Greece if its financial problems worsened. [ID:nPAB008209]
International Monetary Fund managing director Dominique Strauss-Kahn meanwhile told Reuters that Greece's financial problems were unlikely to spread to other euro zone countries with high levels of public debt. [ID:nLDE6260HE]
Sentiment remained buoyant after Friday's data showing U.S. non-farm payrolls declined less than expected, lifting the view that the U.S. may be close to creating jobs and denting the safe-haven allure of the dollar and low-yielding yen. [ID:nN04252324]
"Greece is taking a bit of a backseat now from a market perspective, while risk appetite is coming back into the market. This has given the euro a bit of renewed support," said Niels From, analyst at Nordea in Copenhagen.
At 1049 GMT, the euro <EUR=> was up 0.2 percent at $1.3642, with traders saying near-term resistance was seen around $1.3712, its March 4 high.
"The euro could move higher if it breaks the $1.3720/1.3750 area, but for the moment I don't see it has the momentum," said Antje Praefcke, currency strategist at Commerzbank in Frankfurt.
The dollar index <.DXY> was 0.1 percent lower at 80.355.
Against the yen, the euro rose 0.2 percent to 123.25 yen <EURJPY=R>, having hit a two-week high of 123.80 yen on trading platform EBS earlier on Monday.
"While dollar/yen has derived support from the payrolls data, the improvement in confidence over Greece is clearly helping support euro/yen," Derek Halpenny, European head of global currency research at Bank of Tokyo-Mitsubishi UFJ.
He added that the U.S. jobs data has left market participants "more convinced over the potential for sustainable GDP growth in the U.S.".
The dollar trimmed gains after touching a two-week high of 90.69 yen <JPY=> to trade steady at 90.33 yen <JPY=>.
AUSSIE SHINES
The higher-yielding Australian dollar hit a six-week high versus its U.S. counterpart, buoyed by news Royal Dutch Shell <RDSa.L> and PetroChina <0857.HK> are bidding more than $3 billion for Australia's Arrow Energy <AOE.AX>. [ID:nSGE62602R]
The Australian dollar <AUD=D4> was up 0.4 percent at $0.9110, having risen as high as $0.9131, its strongest since Jan. 21.
Analysts said the break above $0.91 helped the currency extend gains, with the next target seen at $0.9150.
Against the yen <AUDJPY=R>, the Aussie was at 82.29 yen, having hit a two-week high of 82.54 yen.
The yen remained under selling pressure on speculation the Bank of Japan would further loosen its already lax monetary policy following Friday's report that it was mulling more easing measures. [nECONJP] (Additional reporting by Kaori Kaneko in Tokyo; editing by Stephen Nisbet)
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