NEW YORK, June 12 (Reuters) - The U.S. dollar pared losses slightly on Wednesday after the latest interest rate projections by Federal Reserve policymakers showed that they expect only one interest rate cut this year.

That compares with a forecast in March of three cuts. Traders had expected Fed officials would reduce their expectations to two rate cuts this year.

The dollar index was last down 0.71% at 104.51. It earlier fell to 104.25 after data showed that consumer prices were unexpectedly unchanged in May, หวย boosting expectations of two rate cuts this year.

The euro was last up 0.78% at $1.0825. The greenback weakened 0.51% against the Japanese yen to 156.27 yen. (Reporting By Karen Brettell)