FOREX-Dollar falls against yen

(Updated at 1515 EST) By Karen Brettell NEW YORK, Dec 28 (Reuters) - The dollar dipped against the Japanese yen on Thursday on expectations the Federal Reserve will cut interest rates next year, but rebounded from earlier losses against the euro in choppy trading. The greenback has declined as expectations of rate cuts have increased, notably after the Fed's unexpectedly dovish stance at its December meeting. Markets see the Fed's first rate cut coming in March and are pricing in 155 basis points of easing by next December. “The market has gotten even more aggressive on Fed easing,” said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York. But trading this week is volatile with thin volumes and many investors having closed their books for the year. The dollar dropped as low as 140.27 yen, its lowest level since July 28, and was last down 0.28% on the day at 141.42. The move came as investors appeared to close short