FOREX-Dollar advances to six-week high; euro falls to seven-week low

* Powell drives expectations of 4 rate hikes this year

* U.S. data backs rate hike view

* Euro hits 7-week low vs dollar, 6-month trough vs yen

* Soft euro zone manufacturing PMI nudges euro lower

* Graphic: World FX rates in 2018 http://tmsnrt.rs/2egbfVh

(Updates prices, adds comment, FX table, changes byline, dateline; previous LONDON) NEW YORK, March 1 (Reuters) - The dollar rose to a six-week high on Thursday after a set of solid U.S. economic data further stoked expectations that the Federal Reserve could raise interest rates as many as four times this year. The greenback has gained momentum this week following the first public testimony of Federal Reserve Chairman Jerome Powell, who struck an upbeat note on the U.S. economy. Powell delivered testimony again on Thursday to Congress, this time before the Senate Banking Committee. Investors will want to see whether Powell, in his question and answer session, repeats his hawkish comments or tries to dial back some of his message from Tuesday. The euro meanwhile hit a seven-week low on expectations that euro zone interest rates could stay at record lows throughout 2018. Soft inflation data in the euro zone on Wednesday dented expectations that the European Central Bank (ECB) will dial back its stimulus this year. Thursday's U.S. data, on the other hand, showed that a gauge of underlying inflation posted its largest gain in 12 months, while another report showed the number of Americans filing for unemployment benefits fell last week to the lowest level in more than 48 years. A U.S. manufacturing index for February was also stronger than expected. "The U.S. data was consistent with the prevailing view of a Fed clearly on track for further monetary tightening," said Don Curren, a strategist at Cambridge Global Payments in Toronto. In mid-morning trading, the dollar index climbed to 90.932, a six-week peak, with Powell's optimism on the economy in public testimony to Congress suggesting the U.S. central bank is going to raise interest rates one more time than the three hikes markets had expected. The index was last up 0.3 percent at 90.899. It is still down 1.5 percent this year, dogged by investor suspicions that the Trump administration prefers a weaker dollar to mend its bulging trade deficit. In the euro zone, data showing the currency bloc's manufacturing boom slowed last month added to the downbeat mood, helping send the euro as low as $1.2153, its weakest since Jan. 12. "At the start of the year we had a lot of excitement about the strength of growth, and we had a lot of speculation that the ECB was going to taper more aggressively," Rabobank currency strategist Jane Foley said. "A lot of that has just fallen off the scene and there's a bit more of a pragmatic outlook for what the ECB is likely to do, which is maybe a rate hike in 2019."


Currency bid prices at 10:28AM (1528 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change


Euro/Dollar EUR= $1.2173 $1.2193 -0.16% +1.47% +1.2212 +1.2156 Dollar/Yen JPY= 107.0900 106.6700 +0.39% -4.95% +107.1900 +106.5500 Euro/Yen EURJPY= 130.38 130.07 +0.24% -3.55% +130.4700 +129.8600 Dollar/Swiss CHF= 0.9480 0.9444 +0.38% -2.70% +0.9490 +0.9441 Sterling/Dollar GBP= 1.3728 1.3760 -0.23% +1.60% +1.3779 +1.3716 Dollar/Canadian CAD= 1.2843 1.2830 +0.10% +2.12% +1.2865 +1.2826 Australian/Doll AUD= 0.7738 0.7761 -0.30% -0.81% +0.7765 +0.7714


Euro/Swiss EURCHF= 1.1542 1.1516 +0.23% -1.26% +1.1548 +1.1515 Euro/Sterling EURGBP= 0.8865 0.8862 +0.03% -0.20% +0.8877 +0.8837 NZ NZD= 0.7230 0.7210 +0.28% +2.03% +0.7237 +0.7187


Dollar/Norway NOK= 7.9069 7.9001 +0.09% -3.66% +7.9437 +7.8895 Euro/Norway EURNOK= 9.6272 9.6350 -0.08% -2.25% +9.6716 +9.6221 Dollar/Sweden SEK= 8.2927 8.2893 -0.13% +1.11% +8.3177 +8.2666 Euro/Sweden EURSEK= 10.0959 10.1095 -0.13% +2.61% +10.1230 +10.0835

(Reporting by Gertrude Chavez-Dreyfuss Additional reporting by Jemima Kelly in London Editing by Frances Kerry)