* Dollar falls broadly, U.S. manufacturing data declines * G20 meeting seen long on rhetoric, short on specifics * Risk aversion intact; stock markets on defensive * Japan slips into recession in Q3 (Adds details, comment, U.S. data, changes byline, changes dateline) By Steven C. Johnson NEW YORK, Nov 17 (Reuters) - The dollar fell against most major currencies on Monday as data showed U.S. manufacturing activity slumped and world leaders ended a weekend meeting with few concrete proposals for dealing with global recession. The euro also struggled against the yen as fears about the world economy dulled investors' taste for risk. The 15-country eurozone is already in recession and Japan said on Monday its economy joined it as of the third quarter. The yen rose, however, as investors who borrowed it cheaply to finance trades in higher-yielding currencies continued to exit those trades to reduce exposure to risk. Investor unease was heightened as a New York Federal Reserve gauge of manufacturing activity fell to a record low [ID:nN17448701] and CNBC reported that Citigroup (C.N: Quote, Profile, Research, Stock Buzz) intends to cut up to 50,000 people from its payroll [ID:nN17468336]. European shares fell while Wall Street was poised to open lower. Leaders of the Group of 20 leading economies drafted steps to rescue the global economy from its worst crisis in 80 years but left it to individual governments to tailor their responses to their own circumstances and troubled industries. "The market had built up hopes that something concrete would be implemented at the meeting but it was disappointed," said Michael Woolfolk, senior currency strategist at The Bank of New York-Mellon in New York. Early morning, the dollar was down 0.7 percent at 96.28 yen while the euro fell 1 percent to 121.70 yen . Against the dollar, the euro was up 0.1 percent at $1.2640 . Sterling was a standout, rising 1.4 percent to $1.4960 , though dealers said that was driven by investors taking profits after the pound's fall last week to 6-1/2 year lows. Traders and analysts were sceptical however on the pound against a backdrop of worsening British economic conditions. The Confederation of British Industry said Monday the UK economy in 2009 will suffer its sharpest contraction in almost two decades and unemployment could approach 3 million by 2010. In addition to the U.S. manufacturing data, a report last week showed retail sales plunged by nearly 3 percent in October, raising concern about the all-important U.S. consumer, who accounts for some two-thirds of the economy. That has kept currency traders on edge. "There's not a lot of incentive right now to put on risk. We may see bounces, but the overall environment in terms of risk-taking is not fully stabilized," said Michael Rosborough, senior global currency strategist at Citigroup in London. Risk-aversion should continue to boost the yen but should also support the dollar, analysts said, despite its slide on Monday. The dollar has gained as investors have unwound trades in higher-yielding assets in favor of safer assets such as U.S. Treasury debt. "Even in this very unstable market, the dollar has remained well-bid," said Woolfolk. (Additional reporting by Veronica Brown in London; Editing by Tom Hals)

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