* ECB raises interest rates as expected by 0.25 pct
* Euro off 14-month high vs dlr, 11-month peak vs yen
* New Japan quake pushes yen to session peak vs dollar (Recasts, updates prices, adds quotes)
NEW YORK, April 7 (Reuters) - The euro slipped against the dollar on Thursday after the president of the European Central Bank said the ECB had not decided if its expected interest rate hike earlier in the day was the first in a series..
The yen rose to a session peak against the dollar after a Japanese earthquake with magnitude of 7.4 that shook northeast and eastern Japan and resulted in a tsunami warning for the northeastern coast..
ECB President Jean-Claude Trichet later qualified his remarks by saying the bank always does what it judges as necessary, but the remarks were not hawkish enough for some investors who had been betting on at least two further rate increases this year..
Trichet spoke at a press conference after the ECB raised rates for the first time since July 2008 by 25 basis points to 1.25 percent.
"His tone is decidedly neutral right now. He's keeping things very close to his vest," said Boris Schlossberg, head of research at GFT Forex of Trichet. "I think the ECB has done what they wanted with this rate hike and they don't want to raise expectations for more right now."
The euro was down 0.5 percent on the day at $1.4268, off a more than 14-month high of $1.4350 touched on Wednesday. Options traders noted demand for short-term upside strikes in the $1.4400 region, as market players looked to protect against a further rise in the euro.
Some say the euro could fall as low as $1.4200.
"The euro trade has been so focused on interest rate differentials, so some of the fast money might come out of the trade," said Schlossberg.
The single currency has risen more than 3 percent since March 3, when Trichet's comments strongly hinted at a rate hike in April, earlier than markets had then been expecting.
EARTHQUAKE
Against the yen, the dollar fell to a session low of 84.57 yen after reports of the latest earthquake in Japan reached investors, before climbing back to 84.79 yen, down 0.8 percent. Stop-loss orders were triggered below 84.70.
Engineers working at Tokyo Electric Power Co's Fukushima Daiichi nuclear power plant, which was badly damaged by the March 11 quake and is leaking radiation, have been evacuated, officials of operator Tokyo Electric told a televised news conference..
The company said there were no irregularities at its Fukushima Daini plant, which has been shut down since the March 11 quake.
"This could cause some risk aversion to sneak back into the market, but given how other currencies have been screaming higher against the yen since mid-March, the scope for profit-taking was always there around these levels," said David Watt, senior currency strategist at RBC Capital Markets.
Earlier, the dollar rose to a six-month high of 85.54 yen in Asia, almost 10 yen above its record low of 76.25 yen hit in March, days after Japan's devastating earthquake.
Earlier, the Bank of Japan kept monetary policy steady as expected and signaled its readiness to ease policy further, bucking a global trend of central banks withdrawing excess liquidity put in place during the financial crisis.
The euro fell more than 1 percent on the day against the yen, hitting the day's low around 120.74 yen, with traders citing real money selling of euros. It was last down 1.2 percent at 121.03.
SPANISH AUCTION
The currency market was also cautious as Portugal moved to seek a bailout from the European Union, with the size of the package expected to be up to 80 billion euros ($114 billion).
Fears that Spain may be the next on the market's radar for its debt problems eased somewhat after Madrid comfortably sold 4.1 billion euros of a new three-year bond.
Expectations for higher euro zone rates contrasted with uncertainty in the United States over when the Federal Reserve may begin to tighten policy.
The Bank of England kept rates unchanged, as expected.
Sterling slipped against the dollar after the decision as some had positioned themselves for the slim chance of a rate rise.. Sterling was last down 0.2 percent to $1.6301.
The Australian dollar scaled a fresh post-float high against the greenback of $1.0508, according to Reuters data. The Australian dollar was floated in December 1983. (Reporting by Nick Olivari and Steven C Johnson; Editing by Leslie Adler)