* Dollar on pace for biggest weekly gain since December
* World stocks set for 11th straight month of gains
* Tech sector buoys Wall Street after record high close (Updates with opening of U.S. markets, changes dateline from London)
By Lewis Krauskopf
NEW YORK, Sept 29 (Reuters) - The dollar was headed for its strongest week of the year on Friday, while world stock markets climbed back near record-high levels on the last trading day of the quarter.
Firming expectations for another U.S. interest rate increase by year-end, combined with U.S. President Donald Trump's tax-cut plan, have dominated markets for most of the week.
Data on Friday showed U.S. consumer spending barely rose in August but the report did little to change expectations that the Federal Reserve would raise interest rates again in December. Another report showed the Chicago purchasing management index, which gauges factory activity, came in better-than-expected for September. economic data we got was either on target or it was slightly better than expected so there wasn't anything negative at all to put a pause on things," said Randy Frederick, vice president of trading and derivatives for Charles Schwab (NYSE:SCHW) in Austin, Texas.
"Generally, the overall economic backdrop is very solid. In a bull market when you don't have bad news you tend to get up moves in the market," Frederick said.
The Dow Jones Industrial Average .DJI fell 18.29 points, or 0.08 percent, to 22,362.91, the S&P 500 .SPX gained 4.93 points, or 0.20 percent, to 2,514.99 and the Nasdaq Composite .IXIC added 31.99 points, or 0.5 percent, to 6,485.44.
The S&P technology sector .SPLRCT led the way, rising 0.6 percent. S&P 500 had set a record closing high on Thursday.
The pan-European FTSEurofirst 300 index .FTEU3 rose 0.34 percent and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.34 percent.
The MSCI global index was within 0.5 percent of an all-time high and on pace for its 11th consecutive positive month.
The dollar index .DXY was flat. The greenback was up about 1 percent for the week, on track for its best week since December.
"What you have seen is a general closing out of some short dollar positions but for that to be sustained we need greater detail on Trump's fiscal plans and see it going through," said James Binny, head of currency portfolio management for EMEA at State Street Global Advisors.
The euro EUR= was up 0.29 percent to $1.1818.
Benchmark 10-year notes US10YT=RR last fell 4/32 in price to yield 2.3193 percent, from 2.307 percent late on Thursday.
U.S. crude CLcv1 fell 0.23 percent to $51.44 per barrel and Brent LCOcv1 was last at $56.88, down 0.49 percent on the day. gold XAU= dropped 0.2 percent to $1,284.52 an ounce. World FX rates in 2017
http://tmsnrt.rs/2egbfVh GRAPHIC-Global assets in 2017
http://fingfx.thomsonreuters.com/gfx/rngs/COMMODITIES-ASSETS/010031B62XZ/index.html#section/assets GRAPHIC-Global market cap
http://reut.rs/2mcp7T1 GRAPHIC-Emerging markets in 2017
http://tmsnrt.rs/2ihRugV
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