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FOREX-Dollar supported, awaits data to back Fed officials' rate hike views

Published 24/03/2016, 11:43 am
© Reuters.  FOREX-Dollar supported, awaits data to back Fed officials' rate hike views
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* Dollar index hovers near 1-week high

* U.S. durable goods, jobless claims data awaited for cues

* Blasts in Belgium, Brexit woes weigh on euro, pound

* Sharp drop in crude oil puts Aussie, loonie on defensive

By Shinichi Saoshiro

TOKYO, March 24 (Reuters) - The dollar stood near a one-week high against a basket of currencies on Thursday, awaiting data due later in the session that could back some Federal Reserve officials' relatively optimistic views on the U.S. economy.

The dollar index stood not far below 96.230 .DXY , its highest since March 16 that was touched overnight after St. Louis Fed President James Bullard added his support to the possibility of more U.S. interest rate hikes this year.

Bullard said in an interview on Wednesday that policymakers should consider raising rates at their next meeting in April. Philadelphia Fed President Patrick Harker said earlier this week he would prefer at least three hikes before year end.

Economic indicators due later on Thursday include the U.S. durable goods orders and jobless claims data. Upbeat readings would help support the case for the Fed to steadily tighten monetary policy.

"The hawkish comments from Fed officials have helped, but participants adjusting their positions before the Easter weekend also appear to be supporting the dollar," said Shin Kadota, chief Japan FX strategist at Barclays (LON:BARC) in Tokyo.

The dollar was steady at 112.405 yen JPY= after touching a six-day high of 112.905 overnight.

The euro was nearly flat at $1.1177 EUR= , hovering near a one-week trough of $1.1159 struck on Wednesday. The common currency has lost 0.8 percent so far this week, with an attack in Brussels on Tuesday bruising sentiment.

The blasts in Belgium were also seen as exacerbating the possibility of Britain leaving the European Union, further undermining the euro. The possibility of Britons voting for a "Brexit" at a June referendum has also struck the pound, which traded near $1.4081 GBP=D4 , a one-week low plumbed overnight.

A four percent drop in U.S. crude oil prices on Wednesday took a toll on commodity-linked currencies like the Australian and Canadian dollars.

The Aussie was little changed at $0.7529 AUD=D4 after sliding 1.2 percent on Wednesday and the loonie was steady at C$1.3211 to the dollar CAD=D4 following a 1.2 percent drop overnight.

(Editing by Richard Pullin)

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