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updated 1/29/2014 3:14:42 PM ET 2014-01-29T20:14:42

NEW YORK (Reuters) - The dollar rose against the euro on Wednesday after the U.S. Federal Reserve cut $10 billion from its monthly bond-buying stimulus program.

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The greenback initially moved little against the yen on the widely anticipated Fed policy move that contained no surprises but widened its losses to over 1 percent in later trade, as U.S. stocks sold off.

The dollar was also up against the Swiss franc but fell shy of the session's high of 0.9009 in mid-afternoon trading after the Fed's meeting, its last with Ben Bernanke as Fed chair.

The Fed is keeping to a low-interest-rates course, an economist said, even with Janet Yellen taking the chair on Friday.

"From now and the next meeting, they will monitor the contagion risk from emerging markets to the U.S. economy," said Neil Dutta, head of U.S. economics at Renaissance Macro Research in New York. "There' some tightening of financial conditions from the EM turmoil but that's not going to keep the Fed up at night."

The U.S. central bank will trim another $10 billion from its stimulus program in March barring surprises, Dutta said.

The dollar late on Tuesday had risen against the yen and Swiss franc - traditional safe-haven currencies - after a surprisingly aggressive interest rate hike by the Turkish central bank in a bid to shore up its currency, which has shed over 3 percent since Friday.

But the dollar's gains faded as doubts surfaced whether these emergency efforts could offset the political and economic problems that could bog down faster-growing economies. That view muted any positive impact when South Africa later unexpectedly raised its policy rate.

The South African Reserve Bank became the third key emerging market central bank this week to tighten rates, raising its key rate by half a percentage point to 5.5 percent.

The dollar index <.DXY> was little changed at 80.573.

In afternoon trading, the euro was at $1.3654, down 0.1 percent, while the dollar fell 0.8 percent to 102.06 yen, after touching a low of 101.83.

(Additional reporting by Richard Leong; Editing by James Dalgleish)

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