(Fixes typo in first paragraph)
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
By Daniel Leussink
TOKYO, June 14 (Reuters) - The dollar held steady early in
Asia on Friday, and was set to show a weekly rise as investor
focus turned to next week's Federal Reserve meeting for cues on
a possible interest rate cut in light of rising risks to trade
and global growth.
The dollar index against a basket of six rivals was
basically unchanged at 97.001 .DXY , and on track for a near
0.5% gain this week. The index had touched an 11-week low of
96.459 last Friday.
The Federal Open Market Committee's (FOMC) two-day policy
meeting is set to begin on Tuesday. With trade tensions rising,
U.S. growth slowing and hiring in May declining, markets have
priced in at least two rate cuts by the end of 2019.
There was only an 11.3% expectation on Thursday that U.S.
interest rates will be at current levels in July of this year,
compared to 74.1% a month ago, according to the CME Group's
FedWatch tool.
"Ahead of the FOMC meeting, people are expecting dovish
comments from the Fed, which is weighing on the dollar in
general," said Masafumi Yamamoto, chief currency strategist at
Mizuho Securities.
"However, other currencies like euro and sterling are weak
and their weakness is helping the strength of the dollar," he
said.
Investors' attention on Friday will also be on U.S. retail
sales data due later in the day for insights into the state of
domestic demand in the world's biggest economy.
Against the yen JPY= , the dollar dipped 0.05% to 108.34
yen. The yen showed little reaction to the latest round of trade
negotiations between Tokyo and Washington on Thursday.
Japan and the United States deepened their understanding
over each other's position on trade and will continue
discussions, Japan's economy minister Toshimitsu Motegi said
after meeting with U.S. Trade Representative Robert
Lighthizer. Motegi said the two would probably meet again ahead of the
G20 summit meeting in Osaka, Japan late this month.
The euro EUR= edged up 0.03% to $1.1280, holding up after
falling during the past two sessions, though it was still set
for a weekly loss of 0.44%.
Elsewhere, the Australian dollar AUD=D4 was a shade lower
at $0.6913, staying within reach of this month's low of $0.6901
touched on Thursday.
Oil futures dipped in early trading on Friday, having risen
sharply on Thursday following attacks on two tankers near Iran
and the Strait of Hormuz, a key passage for seaborne oil
cargoes. O/R
Mizuho's Yamamoto said rising oil prices resulting from
geopolitical tension in the Middle East could create a drag on
the dollar, adding that higher crude prices were not necessarily
bad for the global economy.
(Editing by Simon Cameron-Moore)