(Refiles to correct day in 1st paragraph to Wednesday)
* Dollar index recovers early losses
* Euro pares gains; up 0.2 pct at $1.3867
* Weaker shares prompt pullback in high-risk currencies
* Market awaits U.S. CPI data
By Tamawa Desai
LONDON, June 17 (Reuters) - The dollar recovered from losses against a basket of currencies on Wednesday as a fall in European shares prompted traders to sell back some positions in currencies perceived as higher risk.
The euro trimmed gains against the dollar, while higher-yielding currencies such as the Australian and New Zealand dollars slipped.
European shares <.FTEU3> fell some 1.5 percent, while U.S. stock futures rose modestly after being in negative territory for most of the European session.
"There's been a bit of an unwinding in risk due to the slide in equities," said Paul Robson, currency analyst at RBS.
He added that risk demand has been struggling to gain more traction in recent sessions as investors reassess whether the global economy is poised for a recovery just yet.
By 1121 GMT, the euro
Trade may be volatile in the $1.3900 region ahead of options set to expire at that level later in the day, some said. IFR reported that such options were worth 200 million euros.
The dollar index <.DXY> was flat at 80.74. The dollar was up
0.1 percent against the yen at 96.46 yen
Market players were focusing on the S&P 500 futures index
A break below that key level would trigger more selling, suggesting increasing risk aversion which may support safe-haven demand for dollars, they said.
Markets showed limited reaction to figures showing an unexpected rise in the euro zone's trade surplus [ID:nLH822197].
U.S. CPI AWAITED
The dollar also got some reprieve after leaders of the emerging BRICs nations in a statement late on Tuesday steered clear of any direct assault on the U.S. dollar's dominance. Moscow called for a smaller role for the dollar and a supranational reserve currency.
Meanwhile, the U.S. Mortgage Bankers Association said its
seasonally adjusted index of mortgage applications
Traders await data on U.S. inflation later in the day.
U.S. core CPI, which excludes volatile food and energy prices, is seen rising 0.1 percent in April on the month which would be the smallest rise this year.
The data come ahead of the U.S. Federal Reserve's policy-setting meeting next week, where some market players speculate the U.S. central bank may need to reinforce its ultra-easy monetary stance given a rise in short-term yields.
"There is certainly justification for the FOMC to strengthen its wording in regard to its commitment to maintain the current monetary stance," said Derek Halpenny, European head of global currency research at Bank of Tokyo-Mitsubishi UFJ.
"Anticipation of this may build in the meantime prompting some renewed speculative selling of the dollar." (Additional reporting by Naomi Tajitsu; Editing by Victoria Main)