Sterling rises vs dollar but wary before BoE

* Sterling up 0.5 percent at $1.6160 GBP=

* Rise in UK stocks buoy pound

* All eyes on BoE, rates seen on hold

* Focus on BoE's QE plans

LONDON, July 8 (Reuters) - Sterling rose against the dollar on Thursday as recent selling of riskier assets eased, but the pound faced headwinds as the market anticipated the Bank of England boosting its quantitative easing program.

Sterling rose on the back of gains in equity markets. London's FTSE index was up 0.5 percent in morning trade.

At 0747 GMT, sterling was up 0.5 percent at $1.6160 GBP=. But it was still down near one percent so far this week.

The euro was down 0.1 percent at 86.31 pence EURGBP=.

The BoE is widely expected to keep key interest rates at a record low of 0.5 percent after it concludes a two-day policy meeting later in the day. All eyes are on how much the central bank will increase its 125 billion pound asset-buying programme.