The dollar rebounded from a 14-year low against the yen on Thursday as traders betting against the U.S. currency cashed in on its recent slide, but the prospect of persistent loose U.S. monetary policy ensured overall sentiment remained bearish.

A fall of 1.7 percent in European stocks .FTEU3 and U.S. futures pointing to a lower open on Wall Street also encouraged traders to pare back positions that involve selling dollars for other currencies and assets like equities and commodities. >>

The dollar and yen on Friday kept their broad gains made the previous day but investor selling of higher-yielding currencies slowed as profit-booking on their rallies of the past few months eased up.

The Australian dollar edged back from early losses and the New Zealand dollar climbed off a two-week low as activity in Asian trading time slowed. >>