(Reuters) - The dollar pared losses versus the yen and fell against the euro in choppy trade on Thursday after the Federal Reserve launched another aggressive stimulus program to boost the U.S. economy. The Fed said it will buy $40 billion of mortgage debt per month and continue to purchase assets until the outlook for jobs improves substantially. The dollar last traded at 77.52 yen, down 0.4 percent on the day, after trading at 77.38 prior to the Fed's statement. The euro last traded at $1.2938, up 0.3 percent on the day. It had been trading at $1.2884 prior to the statement. "The Fed has taken the middle road with a modest, defined contribution purchase program and extended rate guidance," said Joseph Trevisani, chief market strategist at Worldwide Markets, Woodcliff Lake in New Jersey. "This is a psychological holding action." "The Fed cannot cure the economy, only Washington can," he said.

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