* Modestly hawkish Fed statement insufficient to lift dollar

* BOJ expected to ease on Friday, though steps could disappoint

* Japanese govt stimulus package increases pressure on BOJ

TOKYO, July 28 (Reuters) - The dollar took a step back on Thursday after the U.S. Federal Reserve stopped short of signalling a near-term rate rise, while the yen gained on growing expectations the Bank of Japan won't deliver the stimulus investors are looking for this week.

The Fed said on Wednesday after its two-day policy meeting that it was less worried about possible shocks to the U.S. economy, suggesting that a hike as early as September was not out of the question.

"Near-term risks to the economic outlook have diminished," Fed policymakers said.

But the central bank's improved mood wasn't enough to cement expectations that it was gearing up to raise interest rates anytime soon.

"If the U.S. economy continues to grow despite the increased headwinds, slack in the labour market will diminish, and we expect the Fed to squeeze in one rate hike before the end of the year, most likely in December," strategists at Rabobank wrote.

"However, a December call also means that we think that the risk of the FOMC not hiking at all in 2016 is substantial," they said.

The dollar index, which tracks the U.S. unit against a basket of six major rivals, stood at 96.591 , below an overnight high of 97.530. Earlier this week, it had risen as high as 97.569, its highest level since March.

The euro edged 0.1 percent higher to $1.1070 while the safe-haven yen gained ahead of the BOJ's two-day policy meeting that begins on Thursday.

The dollar skidded 0.5 percent to 104.91 yen , while the euro was also 0.5 percent lower at 116.16 yen .

Japan's prime minister unveiled a surprisingly large $265 billion stimulus package on Wednesday, adding pressure on the central bank to match the measures with monetary stimulus steps.

Yen moves and political considerations could be decisive factors for the BOJ, which would prefer to conserve its policy resources in case the Japanese economy takes a turn for the worse.

The Australian dollar was up 0.4 percent at $0.7522 , taking back some lost ground after falling in the previous session as a subdued inflation report left the door open for an interest rate cut next week.

The Reserve Bank of Australia will holds its monthly policy review on Aug. 2.

(Reporting by Lisa Twaronite; Editing by Sam Holmes) ((lisa.twaronite@thomsonreuters.com;)(+81 3 6441 1870; Reuters Messaging: lisa.twaronite.thomsonreuters.com@reuters.net))