* Dollar rises vs yen, pares losses vs euro after FOMC
* Fed to extend bond buying, says economy is leveling out (Adds comments, details; changes byline)
By Vivianne Rodrigues
NEW YORK, Aug 12 (Reuters) - The dollar rose against the yen on Wednesday after the Federal Reserve said the U.S. economy is leveling out and added that it will extend to the end of October a program to buy long-term government securities.
The Fed also left benchmark rates unchanged near zero, as expected. For details, see [ID:nN12136106]
The dollar was 0.3 percent higher at 96.24 yen
Analysts said the Fed's decision to extend the time-frame but not the amount of securities it intends to buy under the program may be considered a sign the economy is improving, and that helped lift the dollar.
"I'd be looking for more dollar-positive reaction out of (the Fed's statement) simply because a lack of extension to the Treasury buying plan represents the elimination of a dollar negative," said Brian Dolan, chief currency strategist at Forex.com in Bedminster, New Jersey.
In afternoon trading in New York, the euro erased all its
previous gains and was little changed at $1.4136