FOREX-Dollar moves sideway after gains, sterling rises

* Dollar seen getting bump if U.S. tax reform enacted

* Sterling rebounds after Haldane's rate-hike remarks

* Falling oil prices pressure commodity-linked currencies

(Updates market action, changes dateline, previous LONDON) NEW YORK, June 21 (Reuters) - The dollar was little changed against a basket of currencies on Wednesday, hovering at a one-month peak as it consolidated gains from earlier this week on expectations of a possibly another Federal Reserve interest rate increase later this year. Sterling rose after a Bank of England's chief economist Andy Haldane said he expected to back a rate increase this year. The currency sagged on Tuesday after BoE Governor Mark Carney said now was not the time to raise UK interest rates after three policymakers had voted in favor of a hike last week.

Commodity-linked currencies such as the Canadian dollar and Norwegian crown fell in step with lower oil prices. "The dollar will bump along just like this and perhaps strengthens a bit if we see tax reform from Washington," said Kristina Hooper, global market strategist at Invesco in New York. Top Republicans from the U.S. Congress and Trump administration vowed on Tuesday to complete tax reform by the end of 2017. The greenback rose earlier this week in reaction to comments from New York Fed President William Dudley who said a tightening U.S. labor market would rekindle inflation, which would leave open the possibility of another rate hike The dollar index was down 0.07 percent at 97.695, slightly below a one-month high of 97.871 reached on Tuesday. The greenback weakened most on the day against the pound following Haldane's hawkish view, which ran counter to his perceived dovish reputation. "If his opinion is shifting then that is potentially significant news for rates going forward," said Adam Cole, head of FX strategy at RBC Capital Markets in London. Investors were also closely watching political developments, with Prime Minister Theresa May's Conservative Party still in talks with Northern Ireland's Democratic Unionists Party (DUP) to form a government. Sterling was down as much as 0.6 percent based on Tuesday's close in New York before halving that decline, which brought it to $1.2659.

Meanwhile, global benchmark oil prices touched seven-month lows on Wednesday on worries about oversupply. That put downward pressure on currencies whose economies are reliant on oil and commodity exports. The Norwegian crown hit near a one-month low against the dollar, and last traded at 8.5376 crowns per dollar, down nearly 0.1 percent on the day. The Canadian dollar traded at C$1.3328 per dollar, down 0.5 percent from late on Tuesday.


Currency bid prices at 12:23PM (1623 GMT)

Description RIC Last U.S. Close Pct YTD Pct Previous Change Change


Euro/Dollar EUR= $1.1143 $1.1134 +0.08% +5.99% Dollar/Yen JPY= 111.5100 111.4200 +0.08% -4.59% Euro/Yen EURJPY= 124.25 124.09 +0.13% +0.90% Dollar/Swiss CHF= 0.9743 0.9750 -0.07% -4.27% Sterling/Dollar GBP= 1.2656 1.2629 +0.21% +2.59% Dollar/Canadian CAD= 1.3323 1.3264 +0.44% -0.80% Australian/Doll AUD= 0.7546 0.7579 -0.44% +4.59%


Euro/Swiss EURCHF= 1.0858 1.0855 +0.03% +1.32% Euro/Sterling EURGBP= 0.8803 0.8813 -0.11% +3.35% NZ NZD= 0.7206 0.7239 -0.46% +3.82%


Dollar/Norway NOK= 8.5365 8.5436 -0.08% -1.16% Euro/Norway EURNOK= 9.5145 9.5090 +0.06% +4.72% Dollar/Sweden SEK= 8.7607 8.7810 -0.15% -3.81% Euro/Sweden EURSEK= 9.7637 9.7784 -0.15% +1.92%

(Reporting by Ritvik Carvalho in London; Editing by Meredith Mazzilli)