* Yen hits 2-1/2 year high vs euro as crude oil, stocks slip again
* Aussie slips as RBA official reportedly says currency too high
* Sterling on a knife edge over EU deal talks (Updates prices, adds details and quotes)
By Patrick Graham
LONDON, Feb 19 (Reuters) - Commodities-linked major currencies like the Australian and New Zealand dollars fell and the yen rose on Friday after a downbeat session for oil prices and Asian stock markets underlined nerves over global growth and finances.
Sterling also followed that mood, trading a touch lower as some EU leaders dug in their heels in summit talks over a new deal for Britain that the government needs to fight against a "Brexit" vote to leave the bloc.
The yen, the chief beneficiary on currency markets of the worst start to a year for stocks since 2009, hit a 2-1/2 year high against the euro in Asian time before consolidating. The dollar also dipped back below 113.00 yen, leaving the Japanese currency 0.3 percent stronger on the day at 112.91. JPY=
The Aussie dollar fell 0.6 percent to $0.7114, hurt by suggestions by central bank board member John Edwards in the Wall Street Journal that the currency was too strong. The New Zealand dollar was also down half a percent to $0.6615.
"The oil chart failed a bit yesterday so we have had a wobble and the yen is the wobble currency of choice," said Richard Benson, head of portfolio management at currency fund Millennium in London.
"I think we're really hinging on risk markets, whether we can have a short squeeze into the end of the month. I'm quite constructive on risk into the G20 next week."
The big issue going into the weekend is sterling and how it reacts to a series of potential triggers on Prime Minister David Cameron's efforts to find a strong new deal on Europe that can keep other major players in his Conservative party on side.
Benson said there was the risk that a sell-off on sterling might drag the euro with it against the dollar. Signs overnight were that EU leaders were digging in their heels on some of Cameron's demands and sterling traded down 0.1 percent at $1.4322 in early trade in Europe. It was down 0.2 percent against the euro at 77.61 pence.
"It does seem to be on a knife edge and several people I've talked to this morning are ready to dump sterling if anything goes wrong," said a trader with one London bank.
The euro was a touch higher at $1.1127 EUR= after slipping to a two-week low of $1.1071 overnight EUR= . Traders said a break below those levels in European trade could send the single currency back towards $1.0950.
Minutes of the European Central Bank's January meeting on Thursday have the market again looking for more weakness in the euro against the dollar ahead of a March meeting now widely expected to deliver further policy easing. ID:nL8N15X3F0
(Editing by Jon Boyle)