* Pound recovers from 31-year low as risk aversion eases

* Ratings agencies cut Britain's sovereign credit ratings

* EU summit and ECB forum in focus

(Recasts, adds details)

By Anirban Nag

LONDON, June 28 (Reuters) - Higher-yielding, riskier currencies such as the Australian dollar rose along with sterling on Tuesday on hopes of a more coordinated central bank response to stem steep losses in markets after Britain's vote to leave the European Union.

Safe-haven currencies such as the yen and the Swiss franc , which had gained sharply since last Thursday's vote, were weaker, although risk sentiment was fragile.

Ratings agencies Standard & Poor's and Fitch have downgraded their sovereign credit standing, adding to the currency's dour outlook.

The first EU summit since the vote will be held on Tuesday.

Sterling rose 0.8 percent to $1.3335 , climbing from a 31-year low of $1.3122 struck on Monday, a trough not seen since 1985. The pound's two-day slide on Friday and Monday was the biggest in modern history and came as British banks lost a third of their value in just two trading sessions.

"Markets may be heading towards consolidation after experiencing sharp losses within the post Brexit environment," Morgan Stanley's head of currency strategy, Hans Redeker, said, noting that sterling had fallen to technically significant levels against many other currencies.

"However, with the downgrade (by S&P) the short-term negative news flow may have reached its peak."

The euro edged up to $1.1060 , recovering from Friday's three-month low of $1.0912. The single currency is under pressure as Brexit clouds the future of the whole bloc.

With European stock markets starting on a firmer footing on Tuesday, the Australian dollar, seen by many as a proxy for risk sentiment, rose 1 percent to $0.7407 .

The dollar rose against the yen, trading at 102.17 yen. On Friday, it had fallen to 99 yen, its lowest since late 2013, when it became clear that Britain's have opted "Leave".

"The market is experiencing a lull in absence of fresh factors and dollar/yen appears to be holding out well," Societe Generale director of forex, Kyosuke Suzuki, said.

Central bank policy makers have an opportunity to soothe markets at a European Central Bank Forum in Portugal. Although ECB President Mario Draghi has cut short his appearance there to head to the EU Summit, he is due to speak on "The future of the international monetary and financial architecture".

(Editing by Louise Ireland)