* BoJ signals more easing later this year
* Dollar struggles to gain on Fed's mixed messages
* Norway's crown, British pound steady before c.bank
meetings
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
By Tommy Wilkes
LONDON, Sept 19 (Reuters) - The Japanese yen rallied on
Thursday after the Bank of Japan kept interest rates on hold,
while the dollar struggled to move higher despite the Federal
Reserve offering mixed signals about the path for further
easing.
Elsewhere, the Norwegian crown is in focus as the central
bank meets - the forecast is for the Norges bank to hike rates -
while in Britain the Bank of England gives its policy decision
later amid prolonged uncertainty about the Brexit outcome.
The Bank of Japan kept monetary policy steady - as expected
- and signaled the chance of expanding stimulus as early as its
next policy meeting in October by issuing a stronger warning
over the risks threatening the economy. But some in the market had expected the BoJ to signal a
stronger chance of more stimulus in the context of central banks
easing globally to boost growth.
"The BoJ did not sound as pessimistic (as expected), they
didn't strongly hint at easing steps to come," said Thu Lan
Nguyen, a currencies analyst at Commerzbank.
The yen rose to as high as 107.79 yen before settling at
108.06 JPY=EBS , up 0.4% on the day.
The dollar dipped slightly against a basket of currencies,
as it struggled to gain despite a more hawkish than forecast
tone from Wednesday's Federal Reserve meeting.
The U.S. central bank, on a 7-3 vote, lowered the Fed funds
target rate to a range of 1.75% to 2.00% "in light of the
implications of global developments for the economic outlook."
However, Fed Chairman Jerome Powell described U.S. prospects
as "favourable" and the rate move as "insurance." His remarks
were not as dovish as markets had hoped for which lifted bond
yields and - initially - the dollar.
On Thursday the dollar was down 0.1%, its index at 98.481
.DXY , while against the euro it was 0.1% lower at $1.1037
EUR=EBS .
Analysts still see the dollar holding up well despite the
reduced likelihood of more rate cuts.
"In the short term, this hawkish cut should still see the
dollar well-bid, given that the path of interest rates outlined
by the Fed is not close to that priced into the markets," said
John Veils, Americas FX and macro strategist at BNY Mellon.
The Australian dollar AUD=D3 had its worst day in a month
as expectations for more central bank rate cuts leapt after
joblessness hit a one-year high. The Aussie dropped 0.7% to a two-week low of $0.6782.
Norway's crown fell against the euro EURNOK=D3 and dollar
NOK=D3 before the Norges bank decision at 0800 GMT.
Sterling was flat at $1.2468 GBP=D3 . British retail sales
numbers are due at 0830 GMT, and the Bank of England policy
announcement at 1100 GMT.