The dollar rose against the euro on Wednesday after a raft of U.S. economic data did little to change expectations the Federal Reserve will press on with its campaign of raising interest rates. But the yen was supported against the dollar and rose against the euro as Tokyo's main stock indices struck fresh four-year highs, thanks in part to ongoing demand from foreign investors. A report on Tuesday showed the U.S. core consumer price index for July, which excludes food and energy costs, rose a softer-than-forecast 0.1 percent. Other data revealed that industrial production in July also rose less than expected. The figures did little to alter the view of most economists that U.S. inflation was tame but at the top end of the Fed's comfort zone, enough to give the central bank reason to keep raising its funds rate in the months ahead. Some analysts expect overnight U.S. rates to go as high as 5 percent after the central bank raised rates to 3.5 percent this month, its 10th straight increase since June 2004. For some traders, though, the dollar's comeback rally this year on the currency's widening interest rate advantage could be running out of steam. "The market is paying less attention to U.S. interest rates now since economic data of late have confirmed that the Fed's policy stance is unchanged," said Mitsuru Sahara, senior trader at UFJ Bank. The dollar was still up 8 percent against a basket of major currencies this year, boosted by expectations for steady rises in U.S. rates. In the three years to the end of 2004, the U.S. currency had fallen 30 percent on persistent worries about the swelling U.S. trade and budget deficits. Earlier this week the dollar received some relief after data showed the United States attracted a net $71.2 billion of foreign capital in June, more than enough to finance its $58.8 billion trade gap that month -- the third biggest on record. By 0540 GMT, the euro fetched around $1.2320 , down about 0.3 percent from the level in late U.S. trade on Tuesday. The euro has rebounded almost 4 percent since hitting a 14-month low of around $1.1870 in early July. With trade thin in a summer holiday market, attention was turning to the release of the U.S. producer price index for July at 1230 GMT, a gauge of wholesale prices.