* Nikkei newspaper says Obama to name Summers soon * Source 'uncertain', but report boosts dollar - trader * Markets focused on next week's Fed meeting By Anooja Debnath LONDON, Sept 13 (Reuters) - The dollar rose broadly on Friday, as uncertainty over future U.S. monetary policy was fanned by a Japanese newspaper report saying Lawrence Summers would soon be named to head the Federal Reserve. Business daily Nikkei said the White House was expected to announce the decision after the Fed's Sept. 17-18 meeting, at which it is expected to trim its bond buying. Former treasury secretary Summers is seen as less dovish than Janet Yellen, the other leading candidate to replace Ben Bernanke, whose term ends next January. Traders said the report gave the dollar and U.S. Treasury yields an added lift. "The source is a little uncertain but nevertheless it is a factor helping the dollar, there is no question about that," said Neil Jones, head of hedge fund FX sales at Mizuho. The dollar index against a basket of currencies was up 0.1 percent on the day at 81.624, edging away from a two-week low of 81.356 set on Thursday. The 10-year Treasury yield hit a peak around 2.957 percent , up from Thursday's close of 2.905 percent. U.S. retail sales and sentiment data due later on Friday could provide an extra boost to the dollar if they come in above market expectations. The main focus remains on next week's Fed policy meeting. Following last Friday's uninspiring U.S. non-farm payrolls data, many traders and analysts expect the central bank to announce a modest $10 billion reduction in its $85 billion monthly bond-buying programme. A much larger number would be seen as hawkish and boost the dollar. The dollar was last up 0.2 percent at 99.72 yen, off an intraday high of 99.98 yen hit after the Nikkei report. Earlier, the dollar rose against the yen after the government raised its view on the economy for the seventh time this year because of rising capital expenditure. "In my view, anything that seems to edge away from deflation pressures is more negative for the yen," said Mitul Kotecha, head of global foreign exchange strategy for Credit Agricole in Hong Kong. The euro slipped against a broadly firmer dollar, with the single currency easing 0.1 percent to $1.3292.

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