FOREX-Dollar dips vs yen, steadies vs euro before US data

* Japanese exporters' dollar offers seen above 88.50 yen

* Euro trims gains made on ECB's hint at future exit strategy

By Rika Otsuka

TOKYO, Dec 4 (Reuters) - The dollar dipped against the yen on Friday as traders took profits on the greenback's sharp rebound from a recent 14-year trough ahead of the U.S. government's monthly employment report later in the day.

Higher-yielding currencies took a breather after a brisk rise against the yen in the last three days as investors became nervous about further purchases of riskier assets.

The yen has fallen broadly this week, reversing a surge the previous week, as the Bank of Japan took steps to attack deflationary pressures.

Market participants were increasingly nervous ahead of U.S. labour data after White House spokesman Robert Gibbs said on Thursday a recent private sector payroll report had signalled that the November unemployment level may tick up from October's 10.2 percent. [nN0397010].

Gibbs stressed his comments were not predicting the outcome of Friday's data but some players trimmed long positions in cross/yen.

"The market would react more to stronger-than-expected numbers as such figures would improve investor risk appetite, likely triggering buying in higher-yielding currencies," said Tsutomu Soma, senior manager of the foreign securities department at Okasan Securities.

The dollar fell 0.2 percent from late U.S. trade to 88.09 yen JPY=, having recovered from a 14-year low of 84.82 yen hit last week on trading platform EBS.

The U.S. currency rose 1 percent against the yen the previous day after Bank of America (BAC.N) said it would repay $45 billion of taxpayer bailout funds, boosting investor confidence. [ID:nN0250856]

Traders said Japanese exporters' dollar offers were lined up above 88.50 yen, keeping players hesitant about chasing the dollar higher.

BOJ SPECULATION

Market participants still believe the dollar is on a long downward trend against the yen, though it might have hit a near-term bottom.

The central bank decided to launch a new money market operation to supply around 10 trillion yen ($113 billion) in three-month funds but speculation has persisted that it could pump even more liquidity into the market.

"The yen has weakened against major currencies mainly on speculation the BOJ could flood the market with funds again, allowing people to embark on yen carry trades again," said a senior forex trader at a Japanese trust bank.

"But if something happens to shake investor confidence, that sort of speculation could easily fade away."

The euro was barely changed against the greenback at $1.5055 EUR=. It dipped 0.2 percent versus the yen to 132.67 yen EURJPY=R.

The euro had climbed sharply versus the Japanese currency the previous day when the European Central Bank suggested it would gradually withdraw emergency liquidity from the system. [ID:nECBNEWS]

The European single currency on Thursday neared a 16-month high against the dollar around $1.5140 after ECB President Jean-Claude Trichet said the next 12-month refinancing operation for banks would be the last.

But the euro soon lost steam as Trichet said liquidity moves should not be seen as any kind of a signal on interest rates. The ECB left rates at record low of 1.0 percent at Thursday's meeting. [ID:nGEE5B125T]

The higher-yielding Australian dollar was down 0.2 percent to 81.37 yen AUDJPY=R.

Economist polled by Reuters gave a median estimate of 130,000 jobs lost in November, down from 190,000 in October, while November unemployment rate is forecasted to be unchanged at 10.2 percent. [ECI/US]