* Dollar rises to 1-month high vs yen as US stocks rebound

* Wall Street jumps on bank rescue hope

* ECB leaves rates unchanged at 2 pct, signals March cut

* BoE cuts rates to record low at 1 percent (Adds comments, updates prices)

By Wanfeng Zhou

NEW YORK, Feb 5 (Reuters) - The U.S. dollar surged to its highest against the yen in nearly a month on Thursday after a rally on Wall Street revived investors' appetite for risk.

The euro fell versus the dollar, weighed down by comments from the European Central Bank chief that the euro zone was undergoing an extended downturn.

The currency market continued to take its cue from U.S. stocks, which rallied amid talk Washington's rescue plan for banks may include suspension of a key accounting rule. That eased demand for the yen, which tends to rise when risk aversion spikes and investors unwind riskier investments.

"We had a lot of (talk) about potentially the SEC relaxing some accounting rules, and that gave the stocks a little bit of a boost. We saw a little bit of a break higher in dollar/yen," said Steven Butler, director of FX trading at Scotia Capital in Toronto.