FOREX-Fragile yen dips after BOJ raises rates in widely anticipated move

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BOJ raises rates as expected, yen eases

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Euro under pressure on lack of ECB outlook

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BoE cut much closer run than market expected; sterling steady

(Updates with BOJ decision)

By Tom Westbrook

SINGAPORE, Dec 19 (Reuters) - The yen fell slightly on Friday in choppy trading after the Bank of Japan's closely watched policy decision, with investors awaiting further details from its governor later ?in the day to see if the central bank can keep hiking rates next year.

The yen was down more than 0.3% at ?156.02 per dollar after the BOJ raised its policy rate to 0.75% from 0.5% in a widely expected ?move that had been well telegraphed by policymakers.

The euro extended gains to ?182.92 yen, while sterling rose ?0.3% to 208.71 yen.

Much of the yen's trajectory now hinges on BOJ Governor Kazuo Ueda's press conference at 0630 GMT to lay ?out the future interest rate path. Sources previously told ?Reuters the BOJ would not publish updated findings of its neutral rate estimate or use it as a key communication tool.

EURO DIPS AS LAGARDE REBUFFS HAWKS

Overnight, the dollar ?had briefly weakened following a sharp and unexpected fall ?in U.S. ?inflation, but investors were not sure how far to trust the data since collection was interrupted by the U.S. government shutdown, and the move soon retraced.

Sterling round-tripped to sit at $1.3379 after ?the Bank of England cut interest rates to 3.75%, as expected, but the decision was closer-run than the market had anticipated which may limit the room for further easing.

The euro dipped about 0.1% overnight and was flat at $1.1722 in Asia, weighed down because European Central Bank chief Christine Lagarde offered no forward guidance and said all options were on the table, pushing back against more hawkish members.

"In recent ?weeks, hawkish ?commentary from ECB Executive Board Member Schnabel had driven a shift in the market's assessment of the risks to policy moving forward," ANZ analysts said in a note to clients. "But (the) balanced ?tone signals Schnabel's view that the next move is more likely to be a hike is not broadly shared across the council."

The ECB left its policy rate on hold at 2%, as expected.

NORWAY, SWEDEN HOLD RATES

Norway's crown was little changed at 10.16 per dollar after the central bank left rates on hold at 4% and indicated it was in no hurry to cut. There was not much movement in the Swedish crown after rates were left ?on hold, as expected.

The Australian and New Zealand dollars were broadly steady at $0.6612 and $0.5769 respectively.

China's yuan was firm in onshore trade, hovering near a more than one-year high hit on Thursday, while South Korea's won has been under sustained selling pressure and was ?wobbly at 1477 per dollar.

Bitcoin remained pinned below $90,000. (Reporting by Tom Westbrook; Editing by Shri Navaratnam and Jamie Freed)