* Yen firm after biggest weekly gains since 2016

* Euro also up as euro carry trade pared back

* Investors bet on Fed rate cut at March 17-18 or even earlier

* Pound, emerging markets currencies suffer

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

By Hideyuki Sano

TOKYO, March 2 (Reuters) - The yen and the euro were on the front foot against the dollar on Monday as traders raised their bets of an interest rate cut by the U.S. Federal Reserve this month to shield the economy from the rapid spread of the coronavirus.

As U.S. shares were routed in recent days, Federal Reserve Chair Jerome Powell said on Friday the central bank will "act as appropriate" to support the economy in the face of risks posed by the coronavirus epidemic.

Investors took his comments as a hint that the Fed will cut interest rates by at least 0.25 percentage point at its next scheduled meeting on March 17-18.

There is even increasing chatter of an unscheduled move, with a U.S. bank lobby economist saying a coordinated global interest rate cut by the top central banks could happen as early as on Wednesday.

The expectations around the Fed underscored the speed and scale of the virus' spread from China through to dozens of countries and the potentially crippling blow to the global economy.

Investors expect the dollar's yield advantage - a key support for the U.S. currency - to shrink as the European Central Bank and the Bank of Japan are seen as having limited room for further cuts given their rates are already in negative territory.

All the same, highlighting the risks posed by the virus, BOJ Governor Haruhiko Kuroda issued a statement to say the central bank would take necessary steps to stabilise financial markets, helping to curtail the yen's earlier gains..

The yen last stood little changed at 108.15 to the dollar , having risen to as high as 107.00 in early Monday trade.

The Japanese currency had risen 3.2% last week, the biggest gain since July 2016. Japan's current account surplus and the yen's vast liquidity make the yen behave like safe haven asset.

"It felt a bit like today's fall in the dollar/yen was a near-term selling climax. But regular dollar buyers such as domestic importers are now on the sidelines. So I expect the market to remain volatile," said Shingo Sato, director of currency trade at MUFG Bank.

The euro rose to one-month highs of $1.1074 and last stood at $1.1050, up 0.3% so far in Asia, after a 1.7% gain last week, the largest in two years.

The common currency's rise stemmed from unwinding of so-called euro carry trade, in which speculators borrow the euro to invest in higher-yielding currencies, market players said.