By Naomi Tajitsu LONDON (Reuters) - The dollar slipped on Friday after a draft communique from Group of 20 leaders said economic stimulus measures would remain in place for now, suggesting U.S. interest rates would remain low. The dollar fell below 90 yen to a 7-1/2 month low after a former Japanese Ministry of Finance official said Japanese authorities would be unlikely to take action against the yen's rise through the psychologically key level. Eisuke Sakakibara, vice finance minister for international affairs in 1997-1999, told Dow Jones Newswires the MoF would not be concerned by a dollar move below 90 yen but might consider action if it fell below 85 yen. A move below 80 yen might be viewed as "abnormal," said Sakakibara, who earned the nickname "Mr Yen" and is still considered by some to be influential. The dollar dipped to 89.97 yen, according to Reuters data, its lowest since mid February, and down more than 1 percent on the day. The yen rose sharply against other currencies while the trade weighted value of the U.S. dollar was down about 0.5 percent on the day. Leaders from the world's rich and developing countries, meeting in Pittsburgh, pledged to keep emergency economic support in place until a durable recovery is secured and to work together when the time comes to remove them, a draft communique obtained by Reuters showed on Friday. Analysts said the communique suggested recovery in the U.S. economy would take more time and U.S. rates would stay near zero. This would restrict demand for the low-yielding dollar, even as global economic weakness kept risk demand in check. "The (G20) is making clear that stimulus will stay in place until a recovery is sustainable," said Michael Klawitter, senior currency strategist at Commerzbank in Frankfurt, adding this suggested interest rates, including those for the dollar, would remain low for a while yet. "The cyclical argument has not changed to favor the dollar." While many in the market believe a U.S. rate rise is far off, Federal Reserve Board Governor Kevin Warsh said on Thursday the U.S. central bank may have to raise rates before the need to take action becomes obvious. By 1024 GMT, the euro was up 0.3 percent on the day at $1.4711, recovering from a fall to as low as $1.4614 earlier in the day. The European single currency hit a one-year peak of $1.4845 on Wednesday on trading platform EBS. The U.S. currency erased gains made earlier in the day, when it had rallied after major central banks said on Thursday they would jointly scale back massive injections of dollars. FOCUS ON U.S. RATES In an op-ed piece for the Wall Street Journal, the Fed's Warsh said that "policy likely will need to begin normalization before it is obvious that it is necessary, possibly with greater force than is customary."

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