LONDON, Dec 19 Reuters The U.S. dollar slipped on Monday as a pickup in market sentiment drove stocks and riskier currencies higher, while the yen gained on reports that Japan will consider revising a decadeold blueprint for fighting deflation.

The dollar index which tracks the greenback against a basket of six major currencies fell 0.2 to 104.580 , reversing some of its gains from the previous week after the U.S. Federal Reserve and European Central Bank ECB hiked rates and promised more to come.

A rebound in risk sentiment across markets pushed European stocks higher after a bruising selloff last week, while currencies including the euro and sterling retraced some of their losses from the previous two sessions.

The euro gained 0.3 to 1.06095 , while sterling strengthened 0.3 to 1.21760 . However, both remained lower than their levels before last week39;s central bank moves.

Markets are trying to find their feet a bit, said Kenneth Broux, currency strategist at Societe Generale. I wouldn39;t hang my hat on the price action this morning.

The safe haven dollar has broadly gained this year, up 9, on concerns about the global economy and widespread inflation. But it has slid nearly 7 in the fourth quarter as investors bet that peak inflation and economic recovery may be in sight.

The Japanese yen gained 0.2 on the day to 136.420 per dollar on reports Japan is considering revising a key monetary policy after a new Bank of Japan governor is appointed in April.

The…