* Sterling edges lower as some investors book profits * BoE votes 9-0 to keep rates, QE unchanged * BoJ easing helps sterling rally vs yen By Nia Williams LONDON, Sept 19 (Reuters) - Sterling dipped against the dollar on Wednesday as investor appetite to take on risk eased slightly and some took profits on the pound's recent rally to a 4-1/2 month high. Bank of England minutes showing all nine policymakers voted to keep interest rates and the quantitative easing total unchanged in September were in line with market expectations and had little impact on the pound. Instead, strategists said sterling's fall was driven by a decline in euro/dollar. Perceived riskier currencies, including the euro and sterling, had rallied against the dollar after the U.S. Federal Reserve announced another round of monetary easing last week. "Sterling has gone up a long way so inevitably there's now pause for thought and we can see some bets are being taken off the table," said Neil Mellor, currency strategist at Bank of New York Mellon. "The BoE minutes have not changed anything. They are still open to the possibility of QE (quantitative easing) which is what any sensible central bank would say." The minutes showed some policymakers thought the UK economy would probably need more stimulus, keeping alive speculation the BoE could extend its 375 billion pound asset purchase programme in November. Sterling fell 0.1 percent to $1.6219, retreating from Monday's peak of $1.6276 which was the highest level since late April. Traders cited offers around $1.6270-90 that helped cap gains earlier on Wednesday and strong resistance at $1.6304, the 2012 high. Stop-loss orders were cited above that level. Rabobank currency strategist Jane Foley said sterling could break $1.63 in coming days if the broad dollar weakening trend resumed, but the move would be driven by wider market sentiment rather than UK domestic data. Dealers remained focused on developments in the euro zone, with uncertainty over whether Spain will ask for a bailout contributing to pressure on the euro and curbing risk appetite. The single currency rose 0.1 percent against the pound to 80.38 pence, down from a three-month high of 81.14 pence hit on Friday. "We have seen a peak maybe in euro/sterling and cable (sterling/dollar) has got overexcited on the Fed printing money and better risk appetite," said John Hardy, FX strategist at Saxo Bank, who expected the euro to fall back towards 78 pence later this year. Sterling also hit a four-month high against the yen of 128.81 yen after the Bank of Japan stepped up its own asset purchase programme by a bigger-than-expected 10 trillion yen ($126 billion). The pound later reversed those gains, tracking a broad recovery in the yen, to last trade at 127.40 yen.

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