* Euro lifted by rise in equities; EU approves Greek plan * Euro up 0.2 pct at $1.3993 EUR=; up 0.5 pct vs yen * U.S. ADP jobs report eyed for clues for Friday's payrolls * Norwegian rate decision due, seen on hold (Adds quotes, updates prices) By Tamawa Desai LONDON, Feb 3 (Reuters) - The euro rose against the dollar on Wednesday as the European Commission backed a Greek deficit-cutting plan as expected, easing some investor worries over euro zone fiscal problems and boosting appetite for risk. A rise in European shares also improved sentiment towards riskier assets, helping to push the dollar broadly lower. The EU's endorsement of Greece's plan to reduce its budget deficit to below 3 percent of GDP by 2012 [ID:nLDE6121AH] helped narrow the spread between Greek and German government bond yields. GR10YT=RREZ10YT=RR [ID:nLDE612103] By 1213 GMT, the euro traded up 0.2 percent at $1.3993 EUR=, after rising to a session high of $1.4026, and moving further away from a 6-month low around $1.3850 hit on Monday. Against the yen, the euro gained 0.5 percent EURJPY=R to 126.80 yen. Analysts said the EU's approval would ease near-term concerns and underpin the euro, though Greece's problems were far from over. "Ultimately it will prove a slow and hard slog for the Greek government to regain the markets' trust requiring the government to successfully meet its budget deficit-cutting targets," said Lee Hardman, currency strategist at Bank of Tokyo-Mitsubishi UFJ. Furthermore, concerns remained about other smaller debt-laden euro zone countries such as Portugal and Spain, which could hinder the single European currency. EU Economic and Monetary Affairs Commissioner Joaquin Almunia said those countries shared some of Greece's problems. [ID:nBRU010631] A monthly Reuters poll showed respondents expected the euro to stand at $1.40 in one month's time. For more results see [ID:nLDE6120B9]. DOLLAR FALLS The dollar index .DXY =USD fell 0.1 percent at 78.894 but not far from a six-month high of 79.534 struck earlier this week. Traders said an Asian sovereign account was a large seller of the greenback in European trade. The U.S. currency tumbled as low as 90.09 yen. It was last flat on the day at 90.43 yen JPY= Improving risk sentiment buoyed higher-yielders such as the Australian dollar AUD=D4, which rose 0.4 percent to $0.8901, further away from five-week lows hit earlier this week. Traders looked to the ADP private-sector employment report for clues to Friday's all-important U.S. jobs report for January. ECONUS Ahead of a rate decision, Norway's central bank said it would tighten guidelines for types of collateral commercial banks can use for loans with the central bank. [ID:nOSN004229] Norges Bank will announce a rate decision at 1300 GMT, and key interest rates are expected to remain unchanged after a rate increase last December. Markets will look for clues for a possible rate hike next month. "Despite the consensus for no change from Norges Bank, we note that the bank has been known to surprise," said UBS analysts in a note. "We expect that at the very least, stronger economic data would appear to justify a stiffening of the language in the policy statement." The euro was steady against the Norwegian crown at 8.1461 crowns EURNOK=R. Any impact may be limited as the market has largely priced in further rate rises, traders said. Central bank policy decisions for the euro zone and the UK were scheduled for Thursday, with the Bank of England expected to halt its quantitative easing programme. (Additional reporting by Neal Armstrong, editing by Nigel Stephenson and Stephen Nisbet)

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