* Options sentiment in dollar ETF UUP turns bullish

* Dollar ETF call volume is 13 times avg daily turnover

By Doris Frankel

CHICAGO, Nov 4 (Reuters) - Option traders on Wednesday appeared to be betting that the dollar will recover as they aggressively scooped up call options in an exchange-traded fund tied to the U.S. dollar index.

The dollar fell in choppy trading against most major currencies after the Federal Reserve left interest rates unchanged, as expected, and said it intends to keep interest rates low for some time. For full story, see [ID:nN04579728]

Shares of the PowerShares DB US Dollar Bullish Fund (UUP.P: Quote, Profile, Research), which tracks the performance of the dollar index against a basket of currencies, slipped 17 cents to $22.51.

The ICE Futures U.S. dollar index .DXY, which measures the dollar's value against a basket of six other major currencies, fell 0.83 percent on the day to 75.751, retreating from Tuesday's one-month high of 76.817.

The fund's shares move up when the dollar strengthens relative to other major currencies. But since October, the dollar has underperformed against most major currencies and UUP is down 17 percent from its November 2008 high of $27.14.

In the options market, however, sentiment was "decidedly bullish," said WhatsTrading.com option strategist Frederic Ruffy as investors aggressively bought UUP call options before and after the Fed's Federal Open Market Committee statement.