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FOREX-Dollar rebounds on higher U.S. yields, upbeat factory data

* ISM U.S. manufacturing index hits highest since Aug 2014

* Benchmark 10-year yield reaches near seven-week peak

* Australian, Swedish central bank decisions on Tuesday

* FX trading quiet ahead of U.S. July Fourth holiday

(Updates market action, changes dateline, previous LONDON) NEW YORK, July 3 (Reuters) - The dollar rose broadly on Monday, starting the new quarter on a positive note, bolstered showed manufacturing activity increased to its strongest level in nearly three years. The greenback just came off its worst quarter since 2010 last week as overseas central banks have signalled they are considering whether to begin reducing monetary stimulus in light of evidence their local economies are doing better. "The market is debating whether central banks could follow through with their tightening. So far the data are going central banks' way," said Steven Englander, head of research and strategy at Rafiki Capital Management in New York. Earlier Monday, the Institute for Supply Management said its index of national factory activity rose to 57.8 last month, the highest reading since August 2014. This upbeat factory report propelled benchmark 10-year Treasury yield to 2.346 percent, the highest in nearly seven weeks, Reuters data showed. A closely watched index that tracks the dollar against six major currencies was 0.6 percent at 96.192, rebounding from its lowest level since early October seen on Friday. The dollar index shed 4.71 percent in the second quarter, its steepest quarterly loss since the 8.49 percent drop in third quarter of 2010. The greenback climbed to a six-week high against the yen at 113.37 yen. It was last up 0.9 percent at 113.34 yen. The euro retreated from its highest in more than a year against the dollar last week. It was last down 0.5 percent at $1.1369. Currency trading activity was muted ahead of the U.S. July Fourth holiday. U.S. financial markets will close early on Monday and will be shut on Tuesday. Ahead of Tuesday's meeting of Sweden's Riksbank, the Swedish crown was down 0.6 percent at 8.4771 crown per dollar. Any shift in the wording of the Reserve Bank of Australia's statement, also early on Tuesday, may also support the Aussie , which was 0.6 percent below Friday's close at $0.7645.

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Currency bid prices at 11:21AM (1521 GMT)

Description RIC Last U.S. Close Pct YTD Pct High Bid

Low Bid

Previous Change Change

Session

Euro/Dollar EUR= $1.1364 $1.1423 -0.52% +0.00% +1.1427 +1.1358 Dollar/Yen JPY= 113.3700 112.3500 +0.91% -2.99% +113.4200 +111.9500 Euro/Yen EURJPY= 128.83 128.40 +0.33% +4.62% +128.8900 +127.8700 Dollar/Swiss CHF= 0.9632 0.9581 +0.53% -5.36% +0.9635 +0.9583 Sterling/Dollar GBP= 1.2934 1.3025 -0.70% +4.85% +1.3023 +1.2932 Dollar/Canadian CAD= 1.2998 1.2962 +0.28% +0.00% +1.3007 +1.2965 Australian/Doll AUD= 0.7645 0.7686 -0.53% +5.96% +0.7695 +0.7645

ar

Euro/Swiss EURCHF= 1.0944 1.0949 -0.05% +0.00% +1.0956 +1.0923 Euro/Sterling EURGBP= 0.8785 0.8769 +0.18% +0.00% +0.8790 +0.8757 NZ NZD= 0.7276 0.7332 -0.76% +0.00% +0.7345 +0.7274

Dollar/Dollar

Dollar/Norway NOK= 8.3610 8.3454 +0.19% -3.20% +8.3705 +8.3362 Euro/Norway EURNOK= 9.5021 9.5349 -0.34% +0.00% +9.5348 +9.4909 Dollar/Sweden SEK= 8.4802 8.4274 +0.06% +0.00% +8.4850 +8.4172 Euro/Sweden EURSEK= 9.6375 9.6316 +0.06% +0.60% +9.6468 +9.6129

(Additional reporting by Patrick Graham; in London; Editing by Susan Thomas and Grant McCool)