RTRS:Stg firm vs dlr on better risk appetite, lags euro
* Sterling rises vs dollar on Asian central bank buying
* But QE speculation from BOE to check gains
* Euro/sterling higher, resistance seen at 87.52 pence (Updates prices, adds fresh quote)
LONDON, Sept 28 (Reuters) - Sterling rose against the dollar on Wednesday with risk appetite improving on optimism that European policymakers may stave off a Greek default, although speculation the Bank of England will opt for more easing is likely to check gains.
Against the euro, the pound lost ground with the common currency rising on news that international lenders are likely to hold an additional meeting in October to discuss the release of the next tranche of aid to Greece -- key for it to avoid default.
"In a market that is looking for good news, the markets' initial take of these statements has been positive," said a London-based spot trader. "So the euro has moved higher both against the dollar and sterling."
Appetite for riskier assets like stocks and commodities and currencies, like the pound, which have a tight correlation to these assets, have come under huge pressure in recent sessions. Selling these assets has gathered pace on worries about a default in the euro zone and cooling growth prospects.
The common currency hit a one-week high against the dollar and gained nearly 0.4 percent against the pound to trade at 87.27 pence , well above its 200-day moving average of 87.11.
A UK clearer was cited by traders as pushing the euro/sterling higher from around the 87 pence level, with 87.52 pence -- the high struck on Sept 26 -- seen as near term resistance. Some traders said the buying was on behalf of euro zone national banks ahead of the month-end.
Nevertheless, the euro could run into selling at higher levels and is likely to be undermined further by speculation that the European Central Bank will opt for a interest rate cut early next month.
Against the dollar, sterling was 0.2 percent higher at $1.5670 . It was supported at dips on buying from Asian central banks with option expiries at $1.5600 cited by traders. Near term resistance is seen at Tuesday's high of $1.5705 while support is seen around the session low of $1.5616.
"We remain bearish on cable and expect it to test $1.55 as speculation that the BOE could resort to quantitative easing next month gathers pace," said Richard Driver, currency analyst at Caxton FX.
"Also UK's proximity to the euro zone debt crisis and the fact that the U.S. dollar is the currency of choice for those seeking safety, we could see sterling under pressure against the dollar."
Expectations that the Bank of England will resort to more easing have picked up pace. BOE policymaker Ben Broadbent this week said the UK currency was likely to remain weak for some time and that a weak global economy would put downward pressure on inflation.
Other members of the committee have also turned dovish and as of last week economists polled by Reuters see a 75 percent chance that the BoE will opt for more quantitative easing in October or November.
