(Updates prices, adds comments)
* Dollar index slips back from Tuesday's 11-month high
* Greenback takes breather after week-long rally
* Bounce in commodity prices lifts Aussie from 1-month low
By Shinichi Saoshiro and Masayuki Kitano
TOKYO/SINGAPORE, Nov 16 (Reuters) - The dollar retreated from an 11-month high against a basket of currencies on Wednesday, taking a breather from a week-long rally driven by a rise in U.S. bond yields after Donald Trump won the presidential election.
The dollar index .DXY slipped about 0.2 percent to 99.989, easing from Tuesday's high of 100.26, the strongest level since last December. A move above 100.51 would take the index to its highest since April 2003.
With its rise on Tuesday, the dollar index had climbed 4.6 percent from a trough hit on Nov. 9, hoisted by a jump in Treasury yields as Trump's victory last week led the market to think that he and a Republican-controlled Congress would embark on fiscal spending to boost the economy.
The market's focus remained squarely on the policies of President-elect Trump and U.S. bond yields.
"The most important factor remains what kind of policies Trump enacts," said Shin Kadota, chief Japan FX strategist at Barclays (LON:BARC) in Tokyo.
"The dollar is likely to be supported until the policies are revealed. What is key for the dollar is the overall balance of Trump's policies, as some may be viewed as negative for the economy," Kadota said.
The greenback had gained a boost on Tuesday from stronger-than-expected U.S. October retail sales data, which reinforced the outlook for a Federal Reserve interest rate hike in December.
Against the yen, the dollar eased 0.2 percent to 108.98 yen JPY= , after setting a five-month peak of 109.34 on Tuesday.
The euro rose 0.2 percent to $1.0747 EUR= , having edged up from an 11-month low of $1.0709 touched on Monday.
"The dollar rally...is a function of U.S. yields and the rise in U.S. yields seems to be slowing down," said Sim Moh Siong, FX strategist for Bank of Singapore.
That being said, it was still too early to tell whether the market has already seen a near-term top in U.S. bond yields, Sim added.
The benchmark 10-year Treasury yield US10YT=RR stood at 2.224 percent on Wednesday, having backed off from a 10-month high of 2.302 percent set earlier in the week.
Elsewhere, the pound stabilised after being hit on Tuesday as media reports refocused traders' attention on the political risks associated with Britain's departure from the European Union. GBP/
Sterling edged up 0.1 percent to $1.2471 GBP=D4 after losing 0.3 percent on Tuesday.
The Australian dollar AUD=D4 last traded at $0.7557, having pulled up from Tuesday's one-month low of $0.7511 on the back of a bounce in commodity prices.