The dollar slipped on Thursday, paring gains made after European officials suggested the euro's rapid rise in the past month could stymie economic growth in the region. The U.S. currency fell against the yen after its rise to a one-week high on Wednesday provided a plum opportunity for Japanese exporters to step in and sell the dollar. "Exporters have been having a difficult time with yen strength, so they are eager to sell whenever the dollar rises," said Nobuaki Kubo, forex planning manager at Resona Bank. Some traders said the U.S. currency was supported by the possibility that the Federal Reserve could raise interest rates in June after data showed consumer prices climbed 0.3 percent in April from a month earlier, beating market expectations. A rate hike next month would help the dollar to maintain its rate advantage over other currencies. But others in the market cited concerns that the central bank, after boosting rates at 16 straight meetings, could face the risk of excessive credit tightening given that economic growth is seen tapering off later in the year. "Even if expectations remained intact for a further rate hike, concerns about heightening inflationary pressures damaging growth could put market focus back to the U.S. deficit problem and limit the dollar's rise," said Hideki Hayashi, global strategist at Shinko Securities, in a report. By 0525 GMT, the dollar traded around 110.65 yen , down 0.3 percent on the day. The U.S. currency rose as far as 111.35 yen on Wednesday, posting its biggest one-day gain since last June. The euro edged up to $1.2760