* Japanese minister says no intention to delay GPIF reform

* Dollar index holds near 4-year high

* Battered Kiwi stoops to fresh 1-year low (Adds details, quotes)

By Shinichi Saoshiro and Hideyuki Sano

TOKYO, Sept 26 (Reuters) - The dollar pared earlier losses and gained against the yen on Friday after Japan's welfare minister said reforms for the country's giant pension fund would continue as planned.

The greenback also held near a four-year high against a basket of major currencies, and further gains looked likely for the U.S. currency as it boasted its the biggest yield advantage over the euro in 15 years.

The dollar had stumbled overnight as a sell off on Wall Street favoured the safe-haven yen.

The dollar recovered, however, after Japan's Welfare Minister Yasuhisa Shiozaki denied media reports that suggested Tokyo would delay reforming its $1.26 trillion Government Pension Investment Fund (GPIF)

Reform of the fund is expected to result in more investment being channelled into Japanese equities and overseas assets, and reports of a possibe delay had given the yen a bullish nudge, until the minister spoke out.

The dollar rose 0.2 percent to 108.96 yen after slipping to as low as 108.47. The dollar has gained nearly five percent this month, touching a six-year high of 109.46 yen last week.

Traders were watching for any sign of Japanese officials trying to check the weakening in the yen, after Prime Minister Shinzo Abe said earlier this week that he would carefully watch the impact of the yen's recent weakness on regional economies.

"Many in the market feel the authorities won't start verbal intervention until dollar/yen rises above 110," said Masashi Murata, a senior currency strategist at Brown Brothers Harriman in Tokyo.

"Abe did touch on the yen this week, but fundamental demerits of a weaker currency are yet to stand out. For example prices of gasoline, crucial to regional economies, have not risen despite a depreciating yen, and he may have spoken merely to counter his critics," he said.

FOUR-DECADE FEAT

The dollar index is on track for its 11th successive weekly rise, a feat it hasn't achieved in four decades, as investors prepare for an eventual rate hike in the United States after the Federal Reserve wraps up its massive stimulus program next month.

The European Central Bank and the Bank of Japan, in contrast, are seen as likely to offer more stimulus to support their flagging economies in coming months.

"At the moment, the economy with strong business sentiment is that of the United States... The dollar is becoming the destination of funds that are escaping stimulus elsewhere," said Daisuke Uno, chief strategist at Sumitomo Mitsui Bank.

The dollar index stood at 85.218, little changed from late U.S. levels but up 0.5 percent so far this week and not far from a four-year high of 85.485 hit on Thursday.

The yield premium U.S. Treasuries offer over German Bunds stood near 15-year highs on Thursday as markets weighed the prospects of U.S. interest rate hikes against the chance of more monetary stimulus in the euro zone.

High bond yields tend to attract more fund inflows as bond investments account for a big chunk of international capital flows.

The euro traded at $1.2748, having fallen to a 22-month low of $1.26955 on Thursday.

Against the yen, it dropped to 138.39 yen in early Friday trade, its lowest level in two weeks.

The New Zealand dollar struggled at one-year lows, still smarting from the central bank chief's tough talk the previous day pointing out that the exchange rate is unsustainable and at unjustified levels.

The kiwi traded at $0.7933, after hitting a one-year low of $0.7889.

(Editing by Shri Navaratnam and Simon Cameron-Moore)