The dollar gained positions vs the euro but fell against the yen on Thursday as fears about negative effects of the credit crunch and falling equity markets led investors to pare back on profitable trades.

After a report showed core U.S. consumer inflation in October was in line with forecasts, dealers began cutting their bets against the dollar, which had become quite stretched.

The dollar has fallen more than 9 percent against a basket of major currencies in 2007 to record lows last week.

The euro declined 0.2 percent against the dollar, trading at $1.4625, more than a cent off record highs above $1.4750 hit last week.

The New York Board of Trade's dollar index, which tracks the greenback against a basket of six major currencies, rose 0.2 percent to 75.957.