The dollar retreated from three-week highs versus the yen on Thursday, quickly giving back gains made after the Federal Reserve took a slightly more hawkish policy tone in signalling two more rate hikes by year-end.

The greenback's bounce faded as forex traders booked profits ahead of the European Central Bank's meeting later on Thursday, where policymakers are seen discussing the timing of winding down the ECB's 2.55 trillion euro bond-purchase program.

Fresh concerns about U.S.-China trade relations were also seen weighing on the dollar against the yen, which is often sought in times of political tensions.

U.S. President Donald Trump will meet with his top trade advisers on Thursday to decide whether to activate threatened tariffs on billions of dollars in Chinese goods, a senior Trump administration official said.

USD/JPY traded at 110.15, down 0.15 percent, having lost steam after touching a three-week peak of 110.85 following the Fed's latest policy statement, which saw a solid outlook for the world's biggest economy.

EUR/USD edged up 0.1 percent above 1.1800, bouncing back from 1.1725 hit after the Fed's announcements and edging near last week's high of 1.1840.