* Dollar pressured after Fed cuts its 2017, 2018 rates outlook
* Yen poised for weekly gains after BOJ alters policy framework
By Anirban Nag
LONDON, Sept 23 (Reuters) - The dollar index was a tad lower on Friday, leaving it on track for its worst week in a month after Federal Reserve trimmed its long-term interest rate expectations and the Bank of Japan retooled its monetary policy framework.
In Europe, the focus was on the preliminary eurozone purchasing managers' index releases for September. Business activity is expected to continue expanding, although at a slower pace. German private sector slowed to a 16-month low and traders said that unless the data surprises considerably there will be limited impact on policy expectations and the single currency.
The dollar index was down a bit at 95.388, while the euro was up 0.1 percent against the dollar at $1.1215. The dollar was up 0.15 percent at 100.90 yen, not far from a nearly four-week low of 100.10 struck on Thursday and on course to shed more than 1 percent for the week.
"The Fed lowering its medium term rate guidance path while keeping a rate hike in play at the end of this year has left the dollar very finely balanced," said Yujiro Goto, currency strategist at Nomura.
The Federal Reserve projected a less aggressive rise in rates next year and in 2018, and it cut its longer-run interest rate forecast to 2.9 percent from 3.0 percent.
Also on Wednesday the BOJ shifted to targeting interest rates on Japanese government bonds as the focus of its massive monetary easing programme, dropping its explicit target of increasing base money.
The BOJ's announcement initially sent the dollar up more than 1 percent to 102.79 yen, though the gains unravelled as investors realized that the central bank would still have an uphill task to generate inflation towards its 2 percent target.
"The build-up to Wednesday was large, with lots of anticipation, but everyone kind of walked away scratching their heads," said Bart Wakabayashi, head of Hong Kong FX sales at State Street Global Markets. "We're defaulting to the levels where the market is comfortable. There wasn't enough to energize the dollar through 100 yen, or 103," he said.
The dollar's proximity to the 100-yen did not escape the attention of Japanese authorities who do want the yen to rise sharply.
"We're concerned about recent extremely nervous moves in the currency market," Chief Cabinet Secretary Yoshihide Suga told a regular news conference on Friday, when asked about the yen's recent rise against the dollar.
(additional reporting by Lisa Twaronite; Editing by)