FOREX-Yen falls broadly after tame CPI data, stocks rise

(Recasts; adds comments, updates prices, changes byline)

* Yen falls broadly as U.S. CPI data boost risk demand

* CPI rises at an unexpectedly slower pace in April

* CPI does not change views Fed on pause

By Vivianne Rodrigues

NEW YORK, May 14 (Reuters) - The yen eased broadly on Wednesday as a tame U.S. consumer inflation report for April boosted stocks and raised investor appetite for risk.

The unexpectedly slow increase in the consumer price index (CPI) briefly caused traders to sell the dollar, but analysts said it did not alter market views that the Federal Reserve's cycle of interest rate cuts was almost over.

"The market looked at it as a positive for risky assets, namely that it takes a little bit of stress off the inflation outlook and gives the Federal Reserve more flexibility in terms of the economic outlook," said Brian Dolan, chief currency strategist at Forex.com in Bedminster, New Jersey.

The dollar jumped to a session high of 105.44 yen JPY=, with Wall Street stocks surging as inflation worries eased. The greenback last traded at 105.02 yen, up 0.2 percent on the day.

"Higher U.S. stocks certainly did help push the yen down across the board," said Joe Manimbo, a currency trader at Ruesch International in Washington.

The euro gained 0.3 percent to 162.42 yen EURJPY= while the Canadian dollar soared 0.6 percent to 104.89 yen CADJPY=.

RISK APPETITE BACK

"The more benign CPI also led to bonds getting bought back, bringing yields down. That's what drove the dollar/yen rate and we're looking at stocks pricing higher, bringing back risk appetite," said Forex.com's Dolan.

Consumer prices rose by 0.2 percent in April, slightly less than the 0.3 percent gain forecast by market analysts. CPI rose 0.3 percent in March.

The dollar erased earlier gains against the euro in what analysts called a kneejerk reaction to the CPI report. The euro was last trading at $1.5460, flat on the day, but off earlier troughs at $1.5397.

It briefly rose to a session high of $1.5486 EUR=.