Sterling falls vs dollar, QE comments still weigh

* Sterling hits one-week low vs dollar

* Euro/sterling at two-week high

* Sterling falls as market absorbs King's QE comment

(Updates with latest prices, more comment)

By George Matlock

LONDON, Nov 12 (Reuters) - Sterling fell to a one-week low against the dollar on Thursday as investors absorbed Bank of England chief Mervyn King's comments on Wednesday that left the door open to more asset purchases to keep monetary policy loose.

The pound rose against the euro, having earlier hit a two-week low, with traders citing selling of euros versus sterling by corporate accounts.

Analysts said sterling's fall was in response to the Bank of England's quarterly inflation report and comments by Governor King but that it was clear how long it would continue.

"It is not clear whether this decline will continue but we have a dearth of data until next Tuesday for sterling to contend with," said Stuart Bennett, senior FX strategist at Calyon in London.