(Corrects day in first paragraph to Monday)
* Upbeat U.S. indicators keep prospects of 2015 rate hike alive
* Expectations of more easing by BOJ, ECB also support dollar
* Dollar strength, slide in copper prices weigh on Aussie
By Shinichi Saoshiro
TOKYO, Oct 19 (Reuters) - The dollar was steady against the yen and euro early on Monday after stronger-than-expected U.S. data kept alive prospects of the Federal Reserve raising interest rates before year-end.
The dollar was nearly flat at 119.37 yen JPY= after gaining 0.4 percent on Friday. The euro was little changed at $1.1357 EUR= , having shed 0.4 percent the previous day.
The dollar got a boost at the end of last week from an upward revision in industrial production for August and a University of Michigan survey showing a sharp rebound in consumer sentiment, which pushed U.S. debt yields higher. urn:newsml:reuters.com:*:nL1N12G0QF ECONUS
The greenback had hit a 7-week low of 118.065 yen while the euro had risen to a 7-week peak of $1.1495 earlier last week after downbeat U.S. indicators and concerns about China's economy undermined prospects of the Fed hiking rates before year-end.
The divergence of monetary policies between the United States and those in Japan and the euro zone also underpinned the dollar.
"To be sure, it was not only the U.S. side that was driving the exchange rates. The dollar recovered smartly...this was aided by the Japanese government downgrading its economic assessment and the final estimate of August industrial production," wrote Marc Chandler, global head of currency strategy at Brown Brothers Harriman.
Japan's government lowered its assessment of the economy and industrial production last week as output sagged.
"Even though the Bank of Japan has shown no sign that it is preparing new stimulative measures, many in the market, still smarting from last year's surprise expect additional easing to be announced at the end of the month," Chandler said.
The euro flagged last week after a European Central Bank policy maker hinted of the need for further monetary easing.
The dollar index edged up 0.1 percent to 94.652 .DXY and put further distance between a 7-week trough of 93.806 touched last Thursday.
The Australian dollar was pressured by the greenback's broad strength and slide in prices of copper. The Aussie was down 0.1 percent at $0.7256 AUD=D4 , having lost about 1.6 percent last week. (Editing by Shri Navaratnam)