FOREX-Euro hits 3-month high as Fed easing prospects weigh on dollar

* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
* Dollar struggles near multi-month lows vs euro, yen
* Aussie receives light lift after RBA Lowe's comments on
policy

By Shinichi Saoshiro
TOKYO, June 24 (Reuters) - The euro rose to a three-month
high against the dollar on Monday, as bearish bets on the U.S.
currency remained solid on prospects of a near-term interest
rate cut by the Federal Reserve.
The euro stretched its rally last week, up 1.4%, and
advanced about 0.15% to $1.1386 EUR= in early Asian trade, its
highest since March 22.
The dollar index .DXY versus a basket of six major
currencies was a shade lower at 96.135, having struck 96.093 on
Friday, its lowest since March 21, after the Fed last week
opened the door for a potential rate cut as early as next month.
That weighed on the dollar and in turn reinvigorated its
counterparts like the euro, which has had troubles of its own
including Italy's debt problem and the possibility of the
European Central Bank having to ease policy.
"It is true that the ECB may have to ease policy especially
with the Fed having shifted to an easing bias," said Yukio
Ishizuki, senior currency strategist at Daiwa Securities.
"But the ECB already employs a negative interest rate policy
and does not have much further room to ease even if they wanted
to, unlike the Fed. It is factors like these which have
seemingly supported the euro."
The dollar nudged up 0.1% to 107.400 yen JPY= after
retreating to a near six-month low of 107.045 on Friday.
The U.S. currency was pressured even more against the yen,
which often serves as a safe haven in times of political angst,
as tensions grew between Iran and the United States.
Also in focus was whether Washington and Beijing can resolve
their trade dispute at a summit in Japan this week of leaders
from the Group of 20 leading world economies.
The Australian dollar AUD=D4 was up 0.4% at $0.6952 after
Reserve Bank of Australia Governor Philip Lowe said it would be
legitimate to question the effectiveness of global monetary
policy easing to boost economic growth. The comments were perceived to be slightly less dovish as
just last week Lowe said a recent cut in Australia interest
rates to an all-time low of 1.25% would not be enough to revive
economic growth.

(Editing by Shri Navaratnam)