* Dollar steadies after yuan comments from China central bank
* Market looks to PBOC yuan guidance
By Hideyuki Sano
TOKYO, Aug 14 (Reuters) - The dollar steadied on Friday after China's central bank said it saw no reason for the yuan to fall any further, but prospects for the yuan and the broader Chinese economy still kept market players jittery.
Data showing that U.S. retail sales rebounded in July, while June sales were revised higher, also boosted the dollar.
In early Asian trade, the dollar changed hands at 124.73 yen JPY= , off its two-month high of 125.28 yen hit on Tuesday. The euro fetched $1.1157 EUR= , having gained 1.8 percent so far this week.
The yuan's sharp falls this week raised speculation that the U.S. Federal Reserve may delay its proposed rate hike, reducing the dollar's yield advantage over other currencies.
"In short, the dollar has become expensive. Falls in oil prices mean subdued inflation. All in all, there is no need to raise rates in a hurry," said Masafumi Yamamoto, senior strategist at Monex Securities.
The dollar's index against a basket of six major currencies stood at 96.372 =USD .DXY , off its one-month low of 95.926 hit on Tuesday.
The yuan and other Asian currencies account for 40 percent of the dollar's trade-weighted effective exchange rate, Yamamoto said.
Traders are looking to where the People's Bank of China will set the yuan's midpoint on Friday as they try to figure out Beijing's policy intentions.
If it sets Friday's mid-point below Thursday's level, at 6.4010 to the dollar CNY=SAEC , it could fan speculation that China wants a deeper fall in the yuan to spur exports to support the economy, said some analysts.
"The latest concerns triggered by the sudden policy action may be subsiding a tad. But there is no change in the fact that the Chinese economy is slowing," said Monex's Yamamoto.
"I think the yuan has become overvalued as other countries tried to cheapen their currencies and it will keep falling, playing catch-up," he added.