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TOKYO, Mar 29 (Reuters) The dollar steadied on Wednesday, keeping broad gains made the previous day after the Federal Reserve raised interest rates and signalled another increase was likely.

The Fed boosted rates by a quarter of a percentage point to 4.75 percent as expected and said in a statement that more policy tightening ''may be needed'', leading many traders to conclude the central bank will raise rates again at its next policy meeting in May.

In early Asian trade, the dollar was at 117.85 yen a tad down from the level in late U.S. trade on Tuesday, when it rose around 1 percent.

The euro was little changed at $1.2005. Its gains following a surprisingly strong reading for an Ifo survey of German business sentiment were wiped out after the Fed's policy meeting.

The single European currency stood at 141.45 yen, little changed from late U.S. levels. The yen staged on Tuesday its largest one-day fall against the euro since early October.

Traders said there was little follow-up dollar buying in Asia, with many in the market considering the Fed's statement was not strong enough to extend the rally.

The communique released after the Fed meeting, the first with Ben Bernanke as chairman, also said U.S. economic growth is likely to moderate to a more a sustainable pace.

Some analysts took that to suggest that the central bank does not feel pressed to keep raising rates repeatedly, after 15 straight hikes since mid-2004.

''The statement could mean the Fed may wrap up its rate hike campaign in May or June,'' said a trader at a Japanese bank. ''On the other hand, Japanese interest rates may be rising, so I suppose the yen could gain from now on.'' REUTERS PDS KP0759