The dollar dipped on Thursday as investors grew cautious ahead of a European Central Bank policy meeting that could set the stage for higher interest rates and before jobs data that may give clues about the outlook for U.S. rates. With ECB members widely expected to keep rates unchanged when they gather later in the day, the market was keen to scrutinise the post-meeting statement for any suggestion of a rate increase when the central bank meets in early August. "The euro is likely to extend gains if the ECB signals today that it will hike rates at its August 3 meeting," said Hiroki Shimazu, market economist at Mizuho Securities. He added that if the ECB downplays such an outcome, this week's rally in the euro on expectations the central bank will be more aggressive in policy tightening could come to a halt. Dollar buying against the yen on security concerns in Asia was lighter a day after the U.S. currency got a boost from a series of missile launches by North Korea. By 0555 GMT, the dollar was at 115.50 yen , down from around 115.75 yen in late U.S. trade. Selling by Japanese exporters served to dent the U.S. currency, traders said. The euro was little changed at $1.2730 , off a one-month high of $1.2840 struck on trading platform EBS on Wednesday. "There is no reason to sell the dollar but there is also no fresh factor to justify further dollar buying today," said Kaoru Kondo, chief forex analyst at Fisco. The euro dipped to 147.05 yen but stayed in sight of a record high of 147.38 yen hit on Wednesday.