Dollar gives up some gains after Fed-inspired rally

The dollar slipped on Thursday, succumbing to profit taking after scoring gains earlier this week on the Federal Reserve's signal that it is not quite finished raising interest rates.
Japanese traders said that Tokyo trade was winding down ahead of the end of the fiscal year on Friday, when the market will be looking to consumer price data from Japan for confirmation that prices are on an uptrend after a near-decade of deflation.
Although the dollar posted sharp gains earlier in the week after the Fed raised rates for a 15th straight meeting and pointed to more rises ahead, the currency is still stuck in the tight ranges it has shuffled in over the past two months.
The dollar had dipped to 117.55 yen from around 117.80 yen in late New York on Wednesday but was still up from a low of 116.26 yen hit earlier in the week.
The dollar fell as low as 117.36 yen on electronic trading system EBS after triggering automatic sell orders at 117.50 yen, traders said. The dollar has been stuck between 115.50 yen and 119.50 yen over the past few months.
The euro rose 0.3 percent to $1.2055, helped by a rebound in sterling.
The pound gained about 0.4 percent to $1.7405, bouncing back from a slide on Wednesday after data showed an unexpected widening of the UK current account deficit.
The euro's gain was also helped along by continued market talk that the United Arab Emirates would convert more of its reserves of roughly $23 billion into euros, traders said. The UAE said earlier in the month that it was looking to convert up to 10 percent of its reserves.
The high-yielding Australian and New Zealand dollars recovered from their sell-off fuelled as central bank tightening of credit elsewhere erodes their once-alluring rate advantage.
The Aussie rose to $0.7105, up from an 18-month low of $0.7015 hit on Wednesday.
The kiwi pushed up to $0.6080 from a 22-month low of $0.5993 hit the previous day, but is still down 8 percent in March, poised for its biggest monthly drop in 18 years.
December euroyen futures hit their lowest since August 1998 on Thursday as investors braced for the BoJ to lift Japan's overnight call rate to 0.25 percent, possibly as soon as July, and to at least 0.5 percent by year-end.