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TOKYO, June 15 (Reuters) The dollar steadied on Thursday after failing to capitalise on a rise in US core consumer prices even though the data helped to cement expectations the Federal Reserve will raise interest rates this month.

Traders trimmed long dollar positions accumulated during the currency's climb against the euro since the start of the month, and its rise versus the yen since mid-May.

Growing confidence that the Fed will extend its two-year credit-tightening campaign for at least another month has boosted the dollar from a one-year low against the euro and an eight-month trough versus the yen.

Traders said that while the dollar may have entered a phase of position unwinding, the US currency would continue to find support from rate expectations.

''So long as economic growth remains intact, inflation risks will be the main support for the dollar,'' said Takehiko Jimbo, forex manager at Mitsubishi UFJ Trust and Banking.

''But if we start seeing evidence of slowing growth, the market's attention will likely shift to that, which will weigh on the dollar.'' US core CPI rose 0.3 percent in May from the previous month, beating forecasts for a 0.2 percent climb and convincing all 20 primary bond dealers polled by Reuters after the data that a rate hike was in the bag at the Fed's two-day policy meeting that ends on June 29.

In early Tokyo trade, the dollar was at 114.95 yen, down a tad from late New York levels on Wednesday. The US currency hit session highs around 115.40 yen after the CPI figures were announced.

The euro was little changed at $1.2600. It ended the previous day's trade up 0.4 percent after the dollar was unable to keep initial gains made on the CPI data.

With the week's main event out of the way, Tokyo traders said the market would focus on Japanese stock prices on Thursday.

Despite a recovery in global stock prices on Wednesday following a broad sell-off in the past few weeks, some said that investors would continue to shun risky assets like equities and commodities, which would support the dollar.

REUTERS DH RAI0654